China Southern scraps B787-8 fleet auction amid escalating US-China tariff row 

China Southern Airlines has cancelled the sale of 10 B787-8 aircraft and two accompanying GEnx-1B70/P2 engines which the carrier had recently put up for auction. 

In November 2024, the Chinese carrier, which is one of China’s “Big three” government-owned international airlines, announced its intention to dispose of its entire B787-8 fleet.  

Subsequently, in the first quarter of 2025, the airline listed the aircraft on the Shanghai United Assets and Equity Exchange in order to start taking bids for them. 

This decision was later reversed, with a notification being posted by the Shanghai exchange on April 11, 2025. 

The decision predated an announcement made by the Chinese government on April 15, 2025, that it would be blocking any further deliveries of Boeing aircraft to airlines in China. However, the decision, appears to be connected to the worsening relations between the United States and China. The ongoing tariff row, with reciprocal tariffs escalating in an upward spiral, has mired the aviation industry in uncertainty and complicated long-term procurement planning decisions. 

China Southern’s original plan to dispose of its entire B787-8 fleet appears to have been motivated by operational reasons. The smaller member of the B787 family of aircraft has proven less popular than the Dreamliner’s larger versions.  

However, with the supply of new widebody aircraft uncertain in the current geopolitical environment, for now China Southern Airlines appears to have decided to cling on to the aircraft it already has. 

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