Boeing not yet facing clear skies in China even as deliveries resume, executive visits

A visit by a senior Boeing executive and the resumption of deliveries of its troubled 737 Max this week do not mean all is now well for the embattled American planemaker, as China’s aviation regulator is intently focused on “absolute safety”, at the behest of Beijing.

The Civil Aviation Administration of China (CAAC), according to a source with knowledge of the matter, has discussed the safety of the embattled aircraft in several meetings in recent months and had asked Boeing executives to visit China for talks.

“The CAAC has always been closely following the recent developments related to the 737 Max and would maintain close contact with Boeing to ensure the absolute safety,” the source said, without elaborating.

China had paused deliveries of the narrowbody 737 Max in May due to concerns over batteries used in cockpit voice recorders in Boeing’s planes.

The renewed focus on safety comes at a time Chinese authorities pledged to shoulder the “political responsibility” of ensuring absolute safety of aviation operations.

“We must be responsible for the safety of all passengers, this is the overriding political task,” CAAC chief Song Zhiyong told an aviation safety conference earlier this month.

“We must strictly implement regulations and standards to ensure the airworthiness of aircraft and the integrity of facilities and equipment … We must strengthen compliance management and ensure that aircraft are in good technical condition.”

On Tuesday, Nelson concluded a three-day trip to Beijing as part of a US-China Business Council delegation that included FedEx Corporation CEO Raj Subramaniam.

In a reply to the Post, Boeing confirmed that it had resumed delivering planes to Chinese customers.

Boeing last met China’s aviation regulator in July 2023, as executive vice-president Stan Deal met Song in Beijing, according to a CAAC statement at the time.

The state-owned China Southern Airlines took delivery of a 737 Max at the beginning of this year, marking the first in nearly five years.

“The Max is constantly in the spotlight of scrutiny,” said Mayur Patel, head of Asia for Singapore-based air travel data provider OAG Aviation.

“The CAAC has every right to ask Boeing to provide details on the safety of aircraft sold to China or being assembled for a Chinese buyer and it’s essential for both sides to keep up close contact.”

Li Hanming, an aviation analyst and founder of a transport consultancy which operates in the United States, said Beijing would be very carefully looking at what Boeing was doing in terms of improving safety of its planes already in operation in China and those being built for Chinese carriers.

“The CAAC should be interested in getting a copy of US watchdogs’ audit on the production procedures of the 737 Max, which could be discussed as the two sides meet,” Li said.

Boeing has continued to assure the public and regulators in recent months that it has increased the frequency of quality checks during manufacturing and made other changes to its quality management system guidelines.

It also announced in March that CEO Dave Calhoun would step down at the end of 2024.

And on Wednesday, Boeing finalised a guilty plea to a criminal fraud conspiracy charge and agreed to pay a fine of US$243.6 million to resolve a US Department of Justice investigation.

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Boeing Max plane grounded globally after mid-air blowout leaving hole the size of a door

Boeing Max plane grounded globally after mid-air blowout leaving hole the size of a door

It has also agreed to invest at least US$455 million globally over the next three years to strengthen its safety and compliance programmes, according to a US court filing.

Earlier this week, Boeing updated its official forecast for the global aviation market, raising the demand for civil aircraft in the next 20 years from 42,595 in 2023 to nearly 44,000.

Boeing said China would lead all markets as the largest single country market.

But the last time China placed a sizeable order for Boeing jets was in 2017, with European rival Airbus receiving more orders from Chinese airlines.