Boeing will restart deliveries to China in June after an import ban imposed by China amid a heightening US-led trade war was reportedly lifted.
Speaking at the Bernstein Strategic Decisions conference, Boeing CEO Kelly Ortberg said the company is watching retaliatory tariffs “more closely”.
“We saw that in China, when there was an increase in tariffs,” he said. “And sure enough the Chinese airlines immediately said, ‘I can’t take delivery of the airplanes'. That's way more impactful to us. Now that's been reversed, these airlines have indicated they're going to take deliveries. The first deliveries will be next month.”
During the event, Ortberg added that the company is “getting very close” to its 38 per month production target for the 737 MAX ramp up.
“Once we get through that stability and the performance indicators look good, which they do right now, then we'll review with the FAA and move to 42 a month from that production,” Ortberg continued.
He said that increase could come mid-year 2025, before a further increase to 47 per month by the end of the year. It is understood that with the first cap increase from the FAA, subsequent cap increases are expected to follow soon after.
He added that Boeing was successful in its 787 production cap being lifted from five to seven per month. In addition, the heat exchanger supply problem has “stabilised”.
“That problem was a result of the Russian invasion situation and having to move the production line,” said Ortberg. “It took them a while to get back on plan. But right now, the heat exchanger production output is meeting our demand and allowing us to go to seven months. But right now, the heat exchanger production output is meeting our demand and allowing us to go to seven months.”
The MAX 7 and 10 are expected to complete certification this year.
“The critical path right now for us is the anti-icing design for the inlet,” Ortberg explained. “We're in the process of finalising that design. We've got some testing underway, critical path testing that should be complete in the June-July timeframe to move forward with that.”
He said the de-icing element element of the certification process has “taken a little longer” than expected. While the company isn't anticipating delays, the company will “just continue to build the MAX 8”.