© Reuters. Boeing plans full return of 737 MAX to Chinese skies in 2023
Quiver Quantitative – The year 2023 marked a milestone for Boeing (NYSE:) as the company announced the full return of all of its 737 MAX jets to service with Chinese airlines. This development is particularly notable given the global grounding of the 737 MAX model in 2019 following fatal crashes in Indonesia and Ethiopia. The aircraft returned to service worldwide from late 2020, but it was not until January 2023 that Chinese airlines resumed operations with this model.
Boeing China CEO Liu Qing confirmed on social media that all Chinese civil aviation’s 737 MAX aircraft, nearly 100 aircraft, had resumed operations. This progress suggests positive momentum in Boeing’s efforts to repair its strained relations with China, not only due to the MAX crisis, but also against the backdrop of current political tensions between the United States and China. Resumption of 737 MAX deliveries to China, interrupted since 2019, would represent a significant financial and strategic victory for Boeing, allowing it to finally deliver and receive payment for many Chinese MAX aircraft currently in stock.
Market Overview: -All Boeing 737 MAX aircraft operated by Chinese airlines are back in service, marking a significant milestone following the 2019 grounding. -This return paves the way for an eventual resumption of deliveries, a financial and diplomatic for Boeing. -New safety checks follow reports of a loose bolt issue, but airlines like Ryanair and Southwest report no problems detected.
Key Points: – Nearly 100 MAX jets operated by Chinese carriers are now in the air, signifying the model’s full reintegration into Chinese airspace. -Renewed deliveries would improve Boeing’s financial results and improve its strained relations with China, hit by the MAX crisis and trade tensions. -Boeing recently delivered a 787 Dreamliner to China, also hinting at a possible thaw of the MAX. -A new safety concern over a loose bolt is prompting inspections by airlines around the world, but early reports indicate no widespread problems.
Looking Ahead: -Boeing’s prospects in China depend on gaining approval for delivery of the MAX and resolving potential safety issues. -Closer relations between the United States and China could facilitate increased business opportunities for Boeing in the world’s second-largest aerospace market. -Continued vigilance for aircraft safety remains paramount for both Boeing and airlines around the world.
The company’s recent activities, including conducting preparatory activities and flight tests on several 737 MAX aircraft for Chinese customers, have fueled speculation about the potential resumption of MAX deliveries to China. This prospect gained credibility after Boeing directly delivered a 787 Dreamliner to China the same week, the first since 2019, and delivered eight 777 freighters to Chinese customers through November.
However, Boeing is also facing a recent safety issue. The company has asked airlines to inspect all MAX planes for possible loose bolts in the rudder control system after discovering hardware problems on two planes. Major 737 MAX operators, including Ryanair (RYA), Southwest Airlines (NYSE:) and FlyDubai, have conducted inspections with no significant operational impacts reported. Ryanair and Southwest Airlines have confirmed no issues, while FlyDubai, which operates an all-737 fleet, is completing inspections without expecting any disruption to their scheduled operations.