If the price of $ 110 million for a brand new airline suddenly doubled, would you be surprised if customers simply disappeared? Boeing said on Wednesday that it was now trying to cover 41 aircraft completed or in production initially intended for several Chinese airlines. The orders were abandoned in response to President Donald Trump imposing a 145% rate on goods imported into the United States of China. A 125% reprisal rate was promulgated by China on imported American goods.
A Boeing 737 Max being prepared for the delivery to the completion center of the plant plan in Zhoushan, China, was unexpectedly transported to Guam last week, a sign that the plane was heading for the Pacific Ocean in Boeing facilities just outside Seattle. Although there is no evidence of an official ban on the Chinese government of imports from Boeing, it is now clear that the country’s public airlines are not willing to eat the financial costs of massive rates.
A huge loss for Boeing could be a victory for Airbus
During his call for results in the first quarter on Wednesday, Boeing CEO Kelly Ortberg described the difficult situation of the company. He expected 50 aircraft deliveries to China during the rest of the year. Only nine of these planes have not yet entered production. Finding other customers to fill in construction slots will not be a problem, but getting an airline to buy someone else’s plane is a huge dilemma. Ortberg said:
“This is an unfortunate situation, but we have many customers who want short -term deliveries, so we plan to redirect the supply on stable demand and we are not going to continue to build planes for customers who will not take them.”
While Boeing has trouble, Airbus is on the verge of a massive agreement in China, according to Reuters. The European giant is in negotiations to conclude a 500 plans agreement. Until now, the impact of the tariff war on the aeronautical industry has been taking place exactly like the CEO of Aercap, Aengus Kelly, predicted it last month. The head of the largest lece the largest plane in the world has planned that the market would divide into two spheres: the United States and everywhere else. Boeing would be relegated to its domestic market and Airbus would conquer the rest of the world.
