American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Can reselling jets made for China to Asian airlines manage headwinds for Boeing? Here’s what experts say

by admin April 22, 2025
April 22, 2025
Can reselling jets made for China to Asian airlines manage headwinds for Boeing? Here’s what experts say

As Beijing halts deliveries of Boeing’s US-made aircraft in response to new tariffs, Asian airlines are sensing an opportunity to expand their fleets, looking to snap up the planes being rejected by China.

According to Bloomberg, Air India Ltd. is seeking to secure Boeing Co. aircraft initially designated for Chinese carriers, according to people familiar with the matter.

Sources familiar with internal deliberations at Air India indicated that the airline intends to engage with Boeing to obtain a number of 737 Max jets originally earmarked for Chinese operators.

Air India is also eager to take up slots for future deliveries should they become available, the people said.

The carrier has benefited from China’s pullback in the past — through March, it had accepted 41 737 Max jets originally built for Chinese airlines.

Their deliveries had been deferred due to issues including safety concerns with lithium batteries in the planes’ cockpit voice recorders.

Further, Malaysia Aviation Group Bhd., the parent company of Malaysia Airlines, is also in discussions with Boeing regarding early delivery slots vacated by Chinese customers.

Having placed a firm order for 30 Boeing 737 Max jets in March—with an option for an additional 30—MAG is reportedly pursuing an accelerated delivery timeline, potentially shortening its original 2029–2030 window.

According to MAG managing director Izham Ismail, the group is considering a capital raise to finance these acquisitions, should it succeed in assuming the vacated slots.

The initiative is particularly significant for Malaysia Airlines as it aims to retire older aircraft variants and expand its regional footprint, with government support framing the move as part of a larger economic strategy.

Trade war undercuts Boeing’s Chinese market access

The ongoing geopolitical tensions are reshaping the commercial aerospace landscape.

Beijing’s imposition of tariffs as high as 125% on US-manufactured goods—prompted by a 145% reciprocal tariff announced by US President Donald Trump—has directly impacted Boeing’s prospects in the Chinese market.

Bloomberg recently reported that approximately 10 aircraft had been queued for delivery to Chinese customers before the embargo was effectively enforced.

Two jets previously destined for Chinese carriers have since been flown back to the United States.

What do experts say?

According to experts, Boeing is unlikely to make any hasty moves.

The trade conflict with China could cool as quickly as it flared up, and the Chinese market remains too important to sideline.

Boeing estimates China will need nearly 9,000 aircraft over the next two decades—translating to more than 200 jets annually—and would prefer to retain a meaningful share of that demand alongside Airbus.

At present, that long-term potential isn’t reflected in Boeing’s order book.

According to Vertical Research Partners analyst Rob Stallard, Boeing has about 160 jets in its backlog destined for Chinese customers, including orders from Hong Kong—roughly 3% of its total.

Airbus, by comparison, has around 6% of its backlog tied to China, though both manufacturers list a significant portion of orders under “undisclosed” customers, some of which are believed to be for Chinese airlines.

While reselling jets originally intended for China offers Boeing a temporary way to manage its inventory, the company’s longer-term objective remains unchanged: to build and sell more planes, especially to China.

Boeing is expected to address the evolving trade landscape when it reports its first-quarter earnings on April 23.

The post Can reselling jets made for China to Asian airlines manage headwinds for Boeing? Here’s what experts say appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US-China trade tensions prompt Beijing restaurant to change beef suppliers
next post
BP shares rise after Elliott reveals 5% stake: here’s what it plans to do

Related Posts

Why record numbers of Americans are giving up...

November 3, 2024

The story behind China’s rise to becoming the...

December 1, 2024

‘We are suffering’: Omar challenger rips Walz for...

August 10, 2024

Buttigieg’s remark claiming men are ‘more free’ with...

July 31, 2024

House Republicans blast ‘cry wolf’ conservatives who tanked...

April 12, 2024

Taxed twice? Decoding double taxation agreements for global...

February 1, 2025

Kim Jong Un prompts health speculation as experts...

June 24, 2024

VP Stakes: Trump meeting with potential running mates...

May 4, 2024

Trump trial delayed in case stemming from Special...

February 3, 2024

Michelle Obama’s office shuts down speculation that she...

March 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (2,992)
    • Investing (2,449)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved