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Boeing is significantly throttling back on production plans for 737 Max aircraft destined for China as the plane maker builds an increasingly unwieldy inventory of aircraft for the country with an uncertain timeline to begin handing over the jets, according to people familiar with the shift.
China is in the middle of its most severe wave of COVID-19 infections since early 2020, with sweeping lockdowns across the country. That has resulted in a sharp drop in Chinese aircraft operations, as the country continues its pursuit of a COVID zero policy.
Related: CAAC clears 737 Max, but aviation in China is different 33 months later
This “approach continues to wreak havoc on domestic air travel, as abrupt lock-downs crater demand,” wrote Rob Stallard of Vertical Research Partners on March 31.
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