China's ban on 737 MAX spooks Boeing's hopes of $10 bn trade deal windfall

International News

China's move to ground Boeing Co's 737 MAX jetliners following the deadly Ethiopian Airlines crash has cast a shadow over the American planemaker's immediate hopes for a major jet order linked to a US-China trade deal, industry sources said.

Evidence of a major potential order for more than 100 jets worth well over $10 billion at list prices had risen in recent weeks as Washington and Beijing reported some progress in trade talks to resolve a months-long trade war.

Those expectations were fanned by signs of pent-up demand stemming not only from a drop in China's public purchases as the two sides descended into a tariff war, but also because China placed no private orders for Boeing aircraft in 2018, according to trade and industry sources familiar with the matter.

Now, those sources say it is uncertain how quickly China will be willing to give the 737 MAX the expected new endorsement after ordering its own airlines to stop flying the jet - though much could change as Ethiopian investigators assemble clues to the second deadly crash of the brand-new model in five months.

On Wednesday, the United States joined a wave of nations grounding the 737 MAX in the wake of Sunday's crash in Ethiopia, which killed all 157 people onboard. The planes will be grounded for weeks, U.S. lawmakers said on Thursday.


 Analysts said the crash has added uncertainty for America's largest exporter over sales to China."It is definitely on their list of concerns because China is Boeing's biggest single export market," Teal Group aerospace analyst Richard Aboulafia said...Read More