May 13 (Reuters) - China has removed a ban on airlines
taking delivery of Boeing ( BA ) planes after the United States
and China agreed a temporary cut in steep tariffs, Bloomberg
News reported on Tuesday, citing sources familiar with the
matter.
Officials in Beijing have started to tell domestic carriers
and government agencies this week that deliveries of aircraft
made in the U.S. can resume, Bloomberg said.
In April, at least three jets at Boeing's ( BA ) delivery center in
China were returned to the United States. Boeing ( BA ) said customers
in China would not take delivery of new planes due to tariffs,
and it was looking to resell potentially dozens of aircraft.
On Monday Washington and Beijing agreed to slash reciprocal
tariffs between the world's two biggest economies of over 100%
during a 90-day negotiation period following weekend talks in
Geneva.
Boeing ( BA ) declined to comment on the Bloomberg report. China's
Civil Aviation Administration did not immediately respond to a
request for comment.
China represents about 10% of Boeing's ( BA ) commercial backlog
and is an important and growing aviation market.
Boeing ( BA ) executives said during the company's first-quarter
earnings call that the company had planned for 50 jets to go to
Chinese carriers this year, with 41 in production or pre-built.
While Boeing ( BA ) had said other airlines are interested in
taking rejected Chinese planes, the planemaker has hesitated to
send the jets elsewhere despite being keen to bring down high
inventory levels.
Seating, for one, was an obstacle since seats were
chosen and purchased by the Chinese airlines.
Chinese customers are expected to take 25 out of 30
remaining 737 MAX jets built before 2023 that have not yet been
delivered, Boeing ( BA ) said.
At least four 777 freighter planes are also in
production for Chinese carriers, according to a source familiar
with the matter and aircraft tracking database Aviation Flights
Group.
Beijing two weeks ago said Chinese airlines and Boeing ( BA )
had been
severely affected
by U.S.-imposed tariffs.
China had
already granted exemptions
from the high tariffs to some aerospace equipment parts,
including engines and landing gear, before Monday's agreement.