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Boeing on Wednesday said that China has “stopped taking delivery” of its aircraft, as tensions between Washington and Beijing over tariffs continue to disrupt the global aviation market.
The company will now begin marketing the planes to other airlines after Chinese carriers returned the planes, Aerospace giant CEO Kelly Ortberg said in an interview with CNBC.
Boeing would be “pretty pragmatic” in finding alternative buyers for the aircrafts, he added.
The remarks came after reports of multiple Boeing 737 MAX jetsoriginally bound for Chinese airlines, were flown back to the United States. One such aircraft, destined for Xiamen Airlines, made an unplanned return to Boeing Field in Seattle on Sunday.
The shift came after US President Donald Trump raised tariffs on Chinese imports to 145% earlier this month to which the latter retaliated with its own 125% tariffs on US-made goods, including aircrafts. The decision rendered Boeing’s bestselling 737 MAX, with a market value of around $55 million, far less affordable for Chinese airlines.
The financial pressure reportedly pushed Beijing to consider measures to help its domestic carriers, especially those leasing Boeing jets.
The company reported a narrower-than-expected loss of $123 million for the first quarter, with revenues rising 18% to $19.5 billion.
In an earnings statement, Ortberg said the numbers show the company is “moving in the right direction.”
Boeing also reaffirmed plans to boost aircraft production, stating it will raise monthly output of the 737 MAX to 38 by 2025, and increase 787 Dreamliner production from five to seven per month.
