Boeing skips China’s biggest airshow amid spending curbs
BOEING will not attend China’s top commercial and defense airshow next month, a notable absence by the planemaker in a key export market.
The US planemaker will not be one of the exhibitors at the Zhuhai Airshow next month, a spokesperson said in an e-mail response. The planemaker has previously said it is looking to curb spending amid a crippling strike that’s entered its seventh week, shuttering production of its workhorse 737 Max.
“We continue to value our relationships in China and look forward to future opportunities to engage with our partners and customers,” the company said on Thursday (Oct 31), without elaborating on the reasons for not attending.
The China International Aviation and Aerospace Exhibition will be held from Nov 12-17 in the southern Chinese city of Zhuhai. While usually a showcase for Chinese defense exhibitors, it has increasingly drawn interest from Boeing, rival Airbus SE and other aviation suppliers.
Boeing is grappling with one of the biggest crises in its history, that began with a near-fatal accident in January that led to intense regulatory scrutiny and production restrictions on its workhorse 737 Max. The planemaker is now contending with a stoppage in the production of its key models, including the 737 Max, after a strike by workers in its main Seattle-area plant.
New CEO Kelly Ortberg has sought to cut 10 per cent of Boeing’s workforce, halt non-critical expenditure and review the future of its space unit in a sweeping strategic overhaul designed to stem cash burn and make Boeing leaner and more focused.
Earlier this month, Boeing raised US$21 billion to bolster its weakened finances and avoid a credit rating downgrade to junk.
Boeing has also been caught up in the geopolitical tensions between the US and China, and new orders for the planemaker have been scarce in what is one of the world’s fastest growing aviation markets. BLOOMBERG
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