Last month, Boeing gave its Chinese customers the green light to resume deliveries of the 737 MAX 8, the company’s most profitable jet, ending an import freeze on the U.S. planemaker’s most famous aircraft that came shortly after its first delivery in 2019. The resumption of deliveries could offer a respite to Boeing’s relationship with China, one of the world’s largest and fastest-growing aerospace markets, and help it regain its footing in its global competitiveness.
China, which has long been the company’s biggest market outside of North America, had grounded all domestic 737 MAX jets after two fatal crashes. But the country’s civil aviation authority said it had decided to re-allow the single-aisle Boeing planes on Wednesday after determining that the aircraft met airworthiness requirements, according to Caijing financial news outlet (link in Chinese). It added that airlines should follow “zero tolerance for safety hazards” and conduct inspections on their Boeing 737-8 planes.
The resumption of deliveries to China is also a sign that Boeing’s efforts to repair its image are working. The company has worked to soothe relations with Beijing amid strained trade tensions with the United States, which Boeing views as its main competitor in commercial aircraft.
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However, the resumption of deliveries will be subject to the approval of regulators worldwide, which typically follow the FAA in approving airplanes and making safety recommendations. Boeing and the FAA need to show that a software fix for the MAX has been tested and approved as safe, and then aviation regulators must approve its use.
A Boeing spokesman said it was “grateful” that the Chinese authorities had approved its 737 MAX 8 for flights, but he declined to comment on whether the firm would begin delivering the planes again or on the timeline for such a move. Boeing also has 137 planes built for Chinese airlines in the United States awaiting delivery. However, it’s still being determined whether China’s return to passenger flying will prompt those airlines to take them.
Boeing is seeking to regain its position in the market for commercial aircraft and is looking to build on a recent rebound in its stock. However, its relationship with China remains complicated, and it needs to be clarified whether the resumption of 737 MAX deliveries will provide a significant boost to its bottom line. Boeing has struggled to compete with rival Airbus for airline orders as the 737 MAX crisis and other factors have contributed to a global slump in travel. The company has boosted production of its newest version of the 737 family to regain momentum, and it is also trying to revive sales of the 787 Dreamliner. Our free weekday briefing on the global economy is delivered every morning.