Boeing CFO Brian West has stated that the company would resell some of the 737 MAX jets it has manufactured for Chinese airlines but cannot deliver since the Chinese aviation authority has not given the planes the green light to fly.
West stated on 15 September 2022 at the Morgan Stanley Annual Laguna Conference that the date of the first Boeing 737 MAX’s resumption to service in China is presently unknown. This means that the US jet manufacturer may have to remarket some of the planes for other, larger markets.
According to reports, Boeing is contemplating retrofitting new MAX aircraft with engines from the company’s massive stockpile of stored 737 MAX jets.
We had customers undertaking flight testing in February 2022 because the Chinese customers and the regulators followed through on their commitments. However, China had to deal with the COVID-19 shutdown and restrictions, so all activity ceased. ” Our current focus is on maintaining open lines of communication with our clientele and government agencies,” West remarked, “We are prepared to pick up where they left off and complete this task; we are ready.”
“There are some aspects of timing over which I have no control. For quite some time, we put off making any kind of choice about the planes. Forget making a choice right now; we can put it off indefinitely.” The chief financial officer continued, “We will start remarketing some jets intended for our Chinese customers.”
According to West, as of July 2022, a total of 290 Boeing 737 MAX aircraft had still to be delivered, with half of those planes destined for the Chinese market.
Since these consumers are so vital to our success, we’ve put off choosing how to best remarket to them. So, we have to figure out how to get past it.” West summed up.