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.

The 737 Max had returned to service in China in January 2023 after being grounded by China’s aviation regulator for nearly four years following deadly crashes in Indonesia and Ethiopia.

Boeing said on Tuesday it has resumed deliveries of the aircraft to China, a day after Boeing Global president Brendan Nelson attended meetings with Chinese Vice-Premier He Lifeng and Foreign Minister Wang Yi in Beijing.

We must strengthen compliance management and ensure that aircraft are in good technical condition
Song Zhiyong, Civil Aviation Administration of China

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.

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Boeing Global president Brendan Nelson (fourth from right) with a delegation from the US-China Business Council during a meeting with Chinese Foreign Minister Wang Yi in Beijing on Monday. Photo: Xinhua

The trip followed the conclusion of China’s third plenum last week, but it is unclear if any safety issues were discussed with the government officials or aviation regulators.

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.

China had been the first country to ground the 737 Max in March 2019 in response to the fatal plane crashes in Indonesia and Ethiopia, and it was the last major aviation market to lift the ban.

Boeing said in November that “99 per cent” of its Chinese clients’ 737 Max fleet had returned to service.

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.

But the process was disrupted by a “door plug” failure on board an Alaska Airlines flight in January.

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
Mayur Patel, OAG Aviation

“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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02:30

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.

China remains a key market for Boeing, which runs a completion and delivery centre in Zhoushan in the eastern province of Zhejiang.

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.

Meanwhile, China’s domestically produced narrowbody C919 aircraft has been conducting commercial flights for more than a year amid growing orders and production capability.

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