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China Southern cancels B787-8 fleet auction amidst growing US-China tariff dispute

By:

Pilotcenter.net

China Southern Airlines has decided to call off the sale of 10 B787-8 aircraft and two GEnx-1B70/P2 engines that were up for auction, indicating a shift in their strategic decisions. The Chinese carrier, a prominent player among China's top government-owned international airlines, had initially expressed its intention to part ways with its entire B787-8 fleet back in November 2024.

Not long after, the airline had proceeded to list the aircraft on the Shanghai United Assets and Equity Exchange for interested buyers to place their bids. However, a surprising turn of events saw the cancellation of the sale, as announced by the Shanghai exchange on April 11, 2025, sparking curiosity among industry watchers.

Interestingly, the reversal of this decision seems to have taken place just before the Chinese government's move on April 15, 2025, to halt further Boeing aircraft deliveries to Chinese airlines. While official reasons for the cancellation remain undisclosed, speculations suggest that the escalating tensions between the United States and China may have played a role in this unexpected twist.

It's worth noting that the backdrop of a lingering tariff dispute between the two economic giants has injected an element of unpredictability into the aviation sector and complicated long-term procurement strategies. The initial plan by China Southern to offload its B787-8 fleet might have been influenced by operational considerations, particularly the subdued demand for the smaller variant within the Dreamliner family.

In light of the uncertainties surrounding new widebody aircraft supplies in the current geopolitical climate, China Southern Airlines appears to have opted to retain its existing fleet for the time being. This strategic pivot underscores the challenging landscape that airlines navigate amidst the shifting dynamics of international relations and industry dynamics.

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