Boeing is getting ready to resume airplane deliveries to China next month after a short-lived halting of transactions last month. Kelly Ortberg, the company’s CEO, announced during a Bernstein conference on Thursday. He provided insights on the Boeing 737 Max series and future production plans.
Ortberg soon announced that that earlier suspension of deliveries had only been a temporary measure. He too helped finalize a deal in which China actually is prepared to accept such deliveries. He stated, “China has now indicated … they’re going to take deliveries.” This latest move by China is a big win for Boeing – a company that has been just as deeply embroiled in difficult international trade waters.
Boeing wants to do the same in order to drastically increase its own production capacity. By midyear, the company expects to be building 42 Max jets a month. They are hoping to increase that production rate to roughly 47 jets per year by the end of this year. This production boost reflects Boeing’s efforts to meet the growing demand in the aviation market and to stabilize its operational output.
Ortberg addressed concerns regarding the recent delivery pause, asserting, “I personally don’t think these will be … permanent in the long term.” His comments demonstrate unprecedented optimism about the future of Boeing’s relationships with international clients — especially considering the Chinese market.
On the logistics side, Ortberg made clear that whatever responsibilities would be involved in making deliveries would be minimal. He noted, “The only duties that we would have to cover would be the duties for a delivery, say, to a U.S. airline.” This statement highlights Boeing’s efforts to keep operations efficient and in line with regulatory expectations.
As Boeing prepares for these deliveries and production increases, stakeholders will closely monitor how these developments impact the company’s financial performance and market position in the coming months.