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China is telling its airlines to stop taking new deliveries of Boeing (BA) jets, according to reports from Bloomberg. This move is seen as part of ongoing US–China trade tensions. George Ferguson, Bloomberg Intelligence senior aerospace defense and airlines industry analyst, joins Market Domination to explain what this means for Boeing.
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Bloomberg, uh, reporting here, George, you saw it. China has ordered its airlines not to take any further deliveries of Boeing jets. What do you make of that, George? And and for investors listening right now, what what could that mean in terms of financial impact for Boeing? How how important is China to Boeing?
Uh, so not very important anymore. I think this doesn't get in the way of Boeing's recovery. Uh, a lot of progress we think they'll we expect they'll make on it this year. So, uh, really since 2018, Chinese airlines haven't ordered from Boeing. Uh, right now there's a little bit over 240 orders on the books from Chinese airlines in Boeing's backlog. That's of a backlog of 6,000, uh, aircraft. So, a very small proportion prior to the pandemic. China, a much bigger buyer prior to the first Trump administration, China, much big buyer would usually take 150 to 180 Boeing airplanes a year. Uh, since that first sort of, uh, Trump, uh, you know, trade action, uh, and the pandemic, we've really seen China cut their, uh, their, you know, take from Boeing way down. Even for the total market, they they only took in 150 narrow body aircraft last year. They were largely from Airbus, uh, because of the slower GDP growth in the country. So, I think there's a lot more, um, you know, there's a big headline here, but I think the effect isn't that great on Boeing.
