[Asia Economy Reporter Jeong Hyunjin] American aircraft manufacturer Boeing announced on the 15th (local time) that it will sell some of the 737 Max planes, which were produced based on orders from China amid US-China tensions but could not be delivered, to other buyers.
According to Bloomberg and others, Boeing CEO Dave Calhoun told reporters at an industry event that day, "We have delayed decisions on this aircraft for a long time. We cannot postpone it forever. Therefore, we intend to put it back on the market."
Boeing revealed in July that there are about 290 undelivered aircraft, half of which are for Chinese customers. Chinese aviation authorities banned the operation of the 737 Max model after crashes occurred in October 2018 and March 2019. China lifted the ban at the end of last year, but deliveries to China have apparently not been made.
CEO Calhoun emphasized that resuming deliveries to China is important for Boeing's future but expressed a negative short-term outlook within 1 to 2 years. He added, "I still think it will return someday. It's just that it won't be soon."
Calhoun said the decision was not easy considering the importance of the Chinese market and Boeing's long-standing relationship with China. He also stressed that Boeing had to resolve the issue of cash being tied up in inventory assets due to undelivered aircraft.
Bloomberg evaluated that this situation highlights the dilemma faced by aircraft manufacturers amid intense US-China trade conflicts. George Ferguson, a Bloomberg Intelligence analyst, predicted that there is a risk of annoying important customers and giving long-term opportunities to Airbus, Boeing's biggest rival in the Chinese market.
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