Boeing Recalls Undelivered Jets from China as Trade Tensions Soar, and More

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Undelivered Boeing 737 MAX Flown Back to US as China Freezes Deliveries

Boeing's complex relationship with China has taken another hit as a 737 MAX aircraft earmarked for Chinese carrier Xiamen Airlines was returned to the United States from Boeing's completion center in Zhoushan, China.

Flight tracking data confirmed the aircraft's 5,000-mile journey back to Seattle, marking a tangible symbol of the deepening trade conflict between Washington and Beijing.

Key Points

• Three Boeing 737 MAX jets that arrived at the Zhoushan completion center in March are being recalled to the US instead of being delivered to Chinese airlines

• The aircraft left China on April 18, passing through Guam on its way back to Boeing's main factory in Seattle

• This follows China's reported directive to domestic airlines to halt Boeing deliveries in response to the 245% tariffs

• At least one Chinese airline has reportedly walked away from a commitment to lease a Boeing aircraft despite prior agreements

• Boeing faces a double blow with some airlines in Europe, including Ryanair, also considering deferring deliveries due to tariff uncertainties

• China is expected to account for 20% of global aircraft demand over the next two decades

What It Means

The return of Boeing jets to the US represents more than just a logistical hiccup—it signals an intensification of the US-China trade war with aerospace as a key battleground.

While Boeing's short-term operations won't be disrupted much due to its extensive order backlog with other international customers, the company's long-term competitive position against Airbus in the vital Chinese market is at risk.

The dispute also threatens to further complicate Boeing's financial recovery as it continues to navigate safety and quality control challenges.

Other Key Aviation Industry Updates for Today 👇

2. Southwest Expands Florida Routes Amid Major Restructuring

Southwest Airlines is adding new Florida routes starting August 2025, including connections between Orlando and Miami, Palm Beach, Sarasota-Bradenton, and Fort Myers.

This expansion comes as the airline prepares for layoffs affecting 1,750 employees (15% of corporate positions) beginning April 22, part of its three-year "Southwest. Even Better" transformation plan to increase profitability.

3. Avelo Airlines Drops Six Routes From Concord Due To Low Demand

Avelo Airlines is discontinuing six routes from Concord Airport in North Carolina, including Nashville, Daytona Beach, and the never-launched Washington Dulles and Detroit services, citing "poor performance and low bookings."

Passengers can still fly Avelo from Concord to Connecticut, New Hampshire, and New York.

This follows fluctuating service levels since the airline began Concord operations in July 2024.

4. Hawaiian Airlines Flight Attendants Approve Three-Year Deal

Hawaiian Airlines flight attendants have ratified a three-year contract extension with an overwhelming 88% approval vote.

The agreement provides "certainty and guaranteed economic and work rule improvements" and aligns contract timelines with Alaska Airlines as the companies continue integration.

Negotiations for a joint collective bargaining agreement for the combined 9,200+ flight attendants began in March 2025.

5. Canadian Airlines Pivot As US Travel Demand Plummets

Canadian airlines are adjusting their summer schedules as travel to the U.S. drops significantly.

WestJet, Air Canada, and Porter are reducing U.S. capacity and redeploying aircraft to domestic and European routes.

Transborder bookings are down approximately 10%, while domestic bookings are up 11%.

Aviation expert John Gradek predicts a potential price war for domestic flights starting in May due to oversupply of Canadian seats.

6. FAA Investigates Frontier Hard Landing In Puerto Rico

The FAA and NTSB are investigating after Frontier Airlines Flight 3506 made a hard landing at Luis Marin International Airport in Puerto Rico on April 16, 2025.

The Airbus A321 from Orlando apparently hit the runway "too hard," leaving debris that temporarily closed the airport. The aircraft circled and successfully landed on its third attempt.

No injuries were reported among passengers or crew as they were bussed to the terminal.

7. NASA Tests Urban Air Taxi Wind Effects With Joby Aircraft

NASA researchers are using ground sensors to collect data from Joby Aviation's experimental air taxi, studying how rotor-generated wind affects aircraft performance, especially near the ground.

The tests, conducted near NASA's Armstrong Flight Research Center, employ advanced lidar technology to map wind turbulence patterns.

A second array of radar, cameras, and microphones will track flights for several months to enhance collision avoidance and traffic management systems for future urban air mobility.

8. UK Court Orders VietJet To Pay $181.8 Million In Lease Case

London's High Court has ruled that Vietnamese budget airline VietJet owes FW Aviation, part of London-based FitzWalter Capital, $181.8 million in a dispute over four Airbus A321 aircraft.

The case stems from terminated leases after COVID-19 travel restrictions.

VietJet claims it has "consistently fulfilled its financial obligations" to other lessors and banks, describing this as an "isolated and exceptional" dispute.

The airline has been granted permission to appeal in May.

9. General Atomics Invests In Dutch Drone Tech Companies

General Atomics has announced investments in two Dutch drone firms: Emergent Swarm Solutions, which develops autonomous flight and drone swarming software, and Saluqi Motors, which produces compact, high-density electric motors for aerospace applications.

These partnerships support General Atomics' advancement of unmanned aircraft technologies.

Recently, the company has demonstrated new capabilities including a 25-kilowatt laser weapon on its MQ-9B drone and satellite communications for its Gray Eagle Extended Range.

10. Indian Drone Maker Garuda Aerospace Secures $11.7M Funding

Garuda Aerospace has raised ₹1 billion ($11.7 million) in Series B funding from Venture Catalysts at a $250 million valuation.

The funds will expand drone production capacity, scaling up from the current 8,000-10,000 units annually, and accelerate the completion of an R&D and testing hub for advanced defense drone design.

Founded in 2015, Garuda operates over 400 drones with 500 pilots across 84 Indian cities, serving major clients including Tata, Adani, and Amazon.