Boeing restarts jet deliveries to China

In a busy week for Boeing, the aircraft maker has resumed delivery of 737 MAX aircraft to Chinese airlines, picked up some large orders and reached a guilty-plea deal on a criminal conspiracy charge regarding two fatal crashes of its 737 MAX jet.

Boeing handed over a 737 MAX 8 to Xiamen Airlines on July 20 from Zhoushan Putuoshan Airport, where Boeing's 737 completion and delivery center is located, according to Simple Flying, an online aviation news outlet. Soon after, Boeing delivered another 737 MAX 8 to Hainan Airlines.

Boeing's deliveries to China had been temporarily suspended since April due to a regulatory review of the 25-hour cockpit voice recorder (CVR) batteries.

Boeing's deliveries to China have been intermittent since 2019, in part due to two fatal crashes of MAX jets that killed 348 people, and also from rising tensions over issues ranging from trade, technology to national security between the U.S. and China.

Simple Fly reported that 80 737 MAXs assigned to Chinese airlines haven't been delivered, with aircraft ages varying from 1 to more than 5 years.

Overall, about 200 fully or mostly finished airplanes are parked in airfields, outside plants or other locations, awaiting parts such as interiors or engines.

Boeing has been experiencing problems with plane delivery since the two MAX crashes, and recently slowed production again due to regulatory and safety scrutiny after the door panel of a Boeing 737 MAX 9 operated by Alaska Airlines blew off midair in January.

Boeing's statement on second-quarter deliveries showed that the company has delivered 175 planes in the first half of 2024, a big reduction compared to 266 from the first half of 2023.

Despite all the issues, Boeing picked up large orders at the Farnborough International Air show outside London, which concludes Friday.

Korean Air said it would purchase up to 50 Boeing wide-body planes. The agreement calls for the airline to receive 20 777Xs and 20 787 Dreamliners, with an option to buy 10 more Dreamliners.

In another agreement, with Japan Air, Boeing will deliver up to 20 additional 787 Dreamliners, including 10 787-9s, with options for 10 more.

Qatar Airways also signed an agreement to purchase an additional 20 Boeing 777X aircraft, bringing the airline's commitment to the twin-aisle plane with folding wings to 94, including both passenger and freighter variants.

Boeing also received a significant order of 20 737 MAX 8 narrow-body planes from Macquarie AirFinance.

Overall, Boeing received orders for 118 planes at the air show, while Airbus received total orders of 85 planes as of Thursday.

While Boeing is picking up pace in orders, it is still facing the aftermath of safety issues related to its MAX jets. A court filing submitted on Wednesday showed that Boeing agreed to plead guilty to conspiracy to defraud the government and would pay another $243.6 million in a penalty on top of the same amount previously paid by Boeing if the deal is approved.

Based on the plea agreement reached earlier with the U.S. Justice Department in July, Boeing admitted that through its employees it made an agreement "by dishonest means" to defraud the Federal Aviation Administration that evaluated the 737 MAX.

As a result of Boeing's deception, the FAA was given incomplete and inaccurate information about the plane's flight-control software and how much training pilots would need to operate it before the agency gave its approval.

The court document says that the U.S. government won't charge Boeing with any other criminal offense related to the conduct. Boeing also will be put on a three-year organizational probation and "shall invest in its compliance, quality, and safety programs a total of at least $455 million". Boeing is also required to have its board meet with the families of crash victims.