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Juneyao Airlines delays Boeing 787-9 Dreamliner delivery due to US-China tariffs

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Juneyao Airlines delays Boeing 787-9 Dreamliner delivery due to US-China tariffs
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Juneyao Airlines Boeing 787-9 Dreamliner | Official Website

Trade tensions between the United States and China are stretching into the aviation sector, affecting airline carrier Juneyao Airlines as it delays the delivery of a Boeing 787-9 Dreamliner. Trade relations have led to increased tariffs on imports between the two countries, impacting the aviation industry and several others.

Juneyao Airlines, which relies on Boeing aircraft to further its long-haul market expansion, faces constraints in achieving its goals due to the current trade situation. According to reports, "Juneyao will now hold off on taking delivery of its latest Boeing jet," continuing to delay its plans until trade tensions subside.

The trade war took an unexpected turn with Donald Trump's increased tariffs on Chinese goods, prompting China to reciprocate. The aviation industry feels the strain with higher tariffs making Boeing aircraft more expensive for Chinese buyers, an expense Juneyao is unwilling to shoulder.

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So far, only Juneyao has deferred delivery, though other Chinese carriers may follow suit if the situation persists. Company plans across the Pacific remain uncertain as they navigate the evolving free trade landscape established by the US and China.

Despite its smaller size, Juneyao maintains a substantial and growing fleet. "According to planespotters.net, the airline currently has a fleet of 102 aircraft," primarily made up of Airbus narrowbody jets. The Boeing Dreamliner, currently deferred, was meant to serve newly-announced long-haul destinations like Australia.

Boeing also expresses concern over the tariffs' impact on its business and supply chain. "The American aerospace firm reiterated that there continues to be strong demand for its products," though it faces potential supply chain disruptions under current economic uncertainties.

The trade war has added to Boeing's existing challenges of quality control issues and manufacturing slowdowns. However, with a solid order book, it continues to hold a cautiously optimistic outlook for its future amidst the ongoing trade conflict.

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