As per reports, Boeing (NYSE: BA), which is struggling in China with sales of passenger planes due to the grounding of its 737 MAX and trade tensions, is hopeful about the outlook for freighter plane sales as e-commerce demand surges. Last May China Cargo Airlines, owned by China Eastern Airlines Corp Ltd, placed an order for two 777 widebody freighters, breaking the three-year deadlock on Boeing plane orders.
“We’ve seen this really explosive demand for dedicated freighter airplanes in the last year,” stated Richard Wynne, managing director of China marketing at Boeing Commercial Airplanes.
The political unrest between the countries (the U.S and China) has resulted in no new orders from China since 2017 for new Boeing passenger planes. However, Boeing’s influence over the freighter market makes it hard to sidestep, with around 90% of the world’s freighters as Boeing aircraft.
Most of the current demand is being driven by a pandemic-induced demand and expansion of online shopping. Online giants like Alibaba Group Holding and major e-commerce rivals JD.Com, and Pinduoduo have all reported forecast-beating revenue growth recently. Boeing’s products include 747, 777, and 767 along with conversions of older 737 and 767 passenger planes.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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