Boeing's Strategic Production Boost and Resumed Deliveries to China Amid Shifting Trade Policies

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ICARO Media Group
Politics
29/05/2025 15h52

### Boeing Eyes Production Boost and Resumes Deliveries to China Amid Evolving Trade Policies

Boeing's CEO, Kelly Ortberg, announced potential plans to elevate the production of the company’s popular 737 Max jets to 47 per month by the end of the year. This comes as Boeing prepares to resume airplane deliveries to Chinese airlines next month after a halt due to a trade conflict during the Trump administration.

Ortberg downplayed the effects of the tariffs resulting from recent trade tensions, expressing doubt over their permanence. While Boeing faced tariff-related challenges on Dreamliner components imported from Italy and Japan, Ortberg pointed out that these costs are mostly offset when planes are exported.

The delivery of aircraft to China, a significant market for Boeing and a major factor in reducing the U.S. trade deficit, was paused last month. However, China has now indicated it will proceed with accepting deliveries starting next month, as Ortberg revealed during a presentation at a Bernstein conference.

Ortberg also touched on Boeing’s strategic plans for this year, emphasizing an increase in production of the 737 Max jet. The Federal Aviation Administration (FAA) had previously limited the production to 38 units per month due to safety concerns. However, Boeing aims to ramp up production to 42 per month by midyear, with the potential to reach 47 by year-end.

In addition to the production plans, Boeing’s Max 7 and Max 10 variants are expected to receive certification by the end of the year. These developments come as Ortberg receives commendation from airline executives for his effective leadership since joining Boeing last August, a period marked by efforts to rectify financial and safety challenges, including the repercussions of two fatal Max crashes.

Notably, United Airlines CEO Scott Kirby shared optimism about Boeing’s progress, although he acknowledged that supply chain issues continue to restrict the delivery of new planes. Kirby highlighted that many airlines ordered additional aircraft in anticipation of supply chain disruptions.

Boeing’s strategic maneuvers in production and trade, bolstered by renewed market confidence, indicate a pivotal shift as the company strives to overcome past hurdles and meet the demands of the global aviation market.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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