China Development Bank Financial Leasing Orders 50 Boeing 737 MAX 8 Jets, Boosting Planemaker Amidst Factory Worker Strike
In a significant move for Boeing (NYSE:BA), China Development Bank Financial Leasing has announced that its aircraft leasing unit will be ordering 50 Boeing 737 MAX 8 jets. This order comes at a crucial time for the planemaker, as it has been facing challenges such as a slowdown in Chinese orders and a strike by factory workers.
Since 2018, publicly disclosed Boeing plane purchases by Chinese customers have been on the decline due to deteriorating Sino-U.S. trade relations and the lengthy return to service process for the MAX in China following two deadly crashes. However, this order for 50 MAX jets marks the largest by a Chinese customer since 2015, when China Southern Airlines ordered the same number of MAX planes.
The deliveries of Boeing aircraft to China have been gradually recovering in recent months, and the deal with CDB Aviation Lease will see the planes being delivered between 2028 and 2031. This will also help boost the proportion of next-generation aircraft in the leasing company's fleet.
This order comes on the heels of a strike by more than 30,000 Boeing factory workers seeking higher pay, which has resulted in a temporary suspension of production for the planemaker's best-selling aircraft, the MAX, among others. Boeing has announced that tens of thousands of workers will be placed on temporary suspension due to the strike.
This MAX order is the second major aircraft deal announced by China Development Bank Financial Leasing in the last week, following their announcement of the purchase of 80 Airbus A320neo planes. Deliveries for the Airbus planes are expected to begin in 2030.
In conclusion, this order for 50 Boeing 737 MAX 8 jets by China Development Bank Financial Leasing is a significant boost for the planemaker amidst challenges such as a factory worker strike and a slowdown in Chinese orders. The increase in deliveries and the addition of next-generation aircraft to the leasing company's fleet will have positive implications for both Boeing and the aviation industry as a whole.