This is another reason Boeing is sitting on its inventory of 138 airplanes. Beijing requires them to prove they can financially support previously placed orders and prove they can successfully support taking airplanes on a one-by-one basis. But smaller, independent, or locally supported airlines are not. The Big Three Airlines-Air China, China Eastern, and China Southern-are on solid financial footing. The viability of many airlines within China is iffy. With the policies recently lifted, passenger traffic is building but it is still well below pre-pandemic levels. Beijing’s three-year-long zero-COVID policies cratered domestic demand. Aside from the geopolitical challenges between China and the US and the well-known slow return to service of the in-country 737 MAXes, Boeing can’t deliver 138 new-build MAXes to China.ĭeliveries are blocked for the aforementioned geopolitical considerations. Regardless of the feasibilities, these goals are bad news for Boeing-and most likely for Airbus, too.īoeing’s dilemma with China is well known. With Western-built suppliers a key to the development of the C919, including the CFM LEAP 1C engines, there is little chance the domestic industry can shift exclusively to domestic suppliers on the scale required in the time desired. But ramping production up to meet future demand is difficult under the best of circumstances. But it is these same sanctions that will make it difficult to achieve.īeijing wants to shift to supplying its single-aisle jet needs to the COMAC C919 by the end of this decade, according to a person familiar with the situation. China’s state-run aviation industry is working toward self-sufficiency because of sanctions.

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