China Contemplates Resuming Boeing 737 Max Purchases Ahead of US-China Presidential Meet at APEC Summit

China is reportedly mulling over the resumption of Boeing 737 Max aircraft purchases, a potential development that could be discussed during the upcoming meeting of US and Chinese presidents at the APEC summit this week. This information comes from a Bloomberg News report on Sunday, citing sources familiar with the situation.

While a formal order for the 737 Max from Chinese President Xi Jinping is not anticipated at this stage, discussions might lead to a preliminary agreement, possibly in the form of a memorandum of understanding or a letter of intent. However, the terms of any potential deal are still being negotiated and could evolve or even dissolve before the world leaders convene on Wednesday.

Boeing has been awaiting the green light to restart 737 MAX deliveries to Chinese airlines for over four years following a suspension caused by two fatal accidents. As of the end of June, the company reported that about 90% of its 737 Max jets in China had returned to commercial service.

The American aerospace manufacturer has faced a significant slowdown in new orders from Chinese carriers since 2017, amid escalating geopolitical and trade tensions between Beijing and Washington.

Despite these challenges, Boeing recently updated its 20-year forecast for new aircraft deliveries in China, slightly increasing its projections due to economic growth and a surge in domestic travel demand.

According to Boeing’s projections, China’s aircraft fleet is expected to more than double, reaching nearly 9,600 jets over the next two decades. The company also anticipates that China will emerge as the world’s largest domestic aviation market by the end of this period, with a specific demand for 6,470 single-aisle planes, including models from the Boeing 737 MAX family.

In April, Reuters highlighted a report from China’s aviation regulator, which Boeing considered a critical step towards resuming deliveries in the country, though no deliveries have recommenced to date.

Boeing declined to comment on the specifics of the Bloomberg report, as the aviation industry keenly observes potential shifts in the Sino-American aerospace landscape.

Sources: AirGuide Business airguide.info, bing.com, Bloomberg.com