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China has signed off on the first direct delivery of a Boeing Co 787 jet in four years, an indication strained US-China trade relations may be easing and a potential precursor to the more significant resumption of 737 Max deliveries.
Juneyao Airlines Co, one of China’s largest privately owned carriers, took delivery of its newest 787 Dreamliner, in a boost for the US planemaker. The jet took off for Shanghai from Boeing’s factory in Everett, Washington, at about 11:25 am local time, according to FlightRadar24 flight data. The delivery marks a breakthrough for Boeing, which has been largely shut out of China’s aviation market this decade.
The US manufacturer hasn’t handed over any of its 737 Max or Dreamliners directly from its factories to the People’s Republic since 2019. The last new 787 to leave for China was via a US lessor in 2021.
Boeing confirmed the delivery in an emailed statement. Juneyao Air said the jet is scheduled to arrive at Shanghai’s Pudong airport, marking a milestone for the internationalisation of the aviation company, according to a post on Chinese social media platform Weibo.
Boeing pared an early gain of as much as 2.8% to close up 0.7% in New York. The stock has soared 47% since the end of October on signs the industrial titan is starting to speed up deliveries of its two main cash cow planes.
The development comes as Boeing and all Chinese airlines wait for Beijing to allow 737 Max deliveries for the first time in almost five years. That model of jet was grounded globally in 2019 after two fatal crashes.
Jefferies LLC has said it expects 737 Max deliveries to Asia’s biggest economy to take place after the 787 delivery.
“There are clear regulatory and political hurdles to overcome but the resumption of deliveries appears to be nearing,” Jefferies analyst Sheila Kahyaoglu wrote in an earlier note. Another 787 destined for China Eastern Airlines Corp also is being prepared, evidence that the Juneyao delivery isn’t a one-off event.
Juneyao’s delivery would help the US planemaker edge closer to its annual 787 delivery target of 70 to 80 jets. Through November, Boeing delivered 62 Dreamliner aircraft, its data show.
The resumption of 787 deliveries to China will also help Boeing winnow its inventory of already built Dreamliners, a move that would bolster cash for the planemaker.
About 12 of the 75 undelivered widebodies in Boeing storage lots are designated for Chinese carriers, according to Jefferies.