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Boeing executive flies to new pastures(2)

2014-03-20 13:09 China Daily Web Editor: qindexing
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As a foreigner, Allen has to deal with some challenges outside the business, when he tries to develop closer relationships with all of the stakeholders throughout the China aviation system.

"The difficulties are that has made the last three years so rewarding," said Allen, a father of four children.

He took lessons in Chinese and after three years in the country is able to speak the language reasonably well.

He can talk with people in Chinese, although he still cannot do a business deal in Chinese.

"That's been a really important part of building relationships here," he said.

The man from South California has a deep understanding of the importance of relationships in China, something he will treasure when he leaves the country.

Boeing has regained top position in the Chinese market in recent years despite its competitors developing fast in the market.

Boeing delivered 168 aircraft to China in 2013, a 60 percent year-on-year rise. Airbus delivered133 airplanes.

"I would like to talk about deliveries, which are real, rather than orders," Allen told reporters when asked about the market situation.

However, it's not been plain sailing in China, Allen admitted frankly.

"The most difficult (time) was not a moment: It was a five-month period," he said.

In early 2013, the Boeing 787 Dreamliner experienced battery-related problems and aviation authorities in some countries ordered airlines to ground the jet until the problem was resolved.

The move affected deliveries to Chinese airlines, because Boeing was in the middle of completing validation-of-type certification for the airplane in China at the time.

"That was a tough time," Allen said.

It was also a busy time for him, because he had to communicate with every side involved, from the factory in Seattle to Chinese local authorities, airlines and banks providing financing.

Technical experts from Boeing were brought over to explain their solution to the problem.

The first Dreamliner was eventually received by a China operator in June 2013. By the end of the year, two Chinese airlines had received a total of 14 Dreamliners.

Despites the loss of the five month period, Boeing still managed to deliver all of the airplanes it planed to deliver in 2013.

"It was truly a miracle," Allen said.

But the airplane builder had to face questions about the new aircraft from Chinese airlines.

"After the delay and the problems, Chinese airlines had second thoughts about the aircraft when they placed new orders," said Li Xiaojin, a professor at the China Aviation University in Tianjin.

The 787 Dreamliner has received just six new orders from Chinese airlines since 2004. It became a big task for Boeing to sell its new aircraft in China.

The good news for the company is that new 787 orders can be expected from the China market this year. Negotiations with some Chinese airlines are underway, said Ihssane Mounior, Boeing's senior vice-president of sales and marketing in Northeast Asia.

If the talks bear fruit, Allen's successor will start on a good footing because Boeing had already received more than 230 orders from Chinese clients in 2013.

Ian Thomas, former president of Boeing Australia and South Pacific, is the new president of Boeing China. Thomas also needs to deal with certain challenges in China.

"I think the challenge is going to be the pace of change," said Allen.

He said he believes his successor will see different things in China and make adjustments in reaction to whatever he sees.

Meanwhile, the entire Boeing leadership, including both Allen and Thomas, have to handle another unexpected and critical issue: the fate of the Malaysian Airlines MH370 Boeing 777-200ER aircraft that disappeared with 239 people onboard including 158 Chinese on March 8.

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