Boeing (BA) won a key approval from China’s aviation regulator, bringing the Dow Jones aerospace giant one step closer to resuming 737 Max deliveries in the country. BA stock rose modestly early Thursday.
Boeing still needs approval from China’s National Development and Reform Commission to begin 737 Max jet deliveries to individual airlines, according to the report from trade publication Air Current.
China Southern Airlines has apparently conducted a 737 Max testing flight, Deutsche Bank analyst Scott Deuschle reported Wednesday. That is “suggestive of a higher probability that deliveries of 737 MAX aircraft into China could resume in the coming months.”
Boeing hasn’t delivered the 737 Max to a Chinese airline since March 2019. The 737 Max was grounded from March 2019 to November 2020 following two deadly crashes. The Covid pandemic chilled air travel and the need for new jets. That was especially true in China, where a zero-Covid policy only ended in late 2022.
Domestic Chinese carriers didn’t begin flying the Max again until January 2023.
Boeing stock rose 1.8% in early Thursday market trading. Shares fell 1.2% to 260.25 in Wednesday’s market sell-off, reversing lower from the highest level since March 2021.
BA stock has skyrocketed from 176.25 in late October.
Boeing 737 Max deliveries in China would be good news for jet-engine maker General Electric (GE). GE stock edged higher early Thursday. On Wednesday, shares fell 2% to 123.37 after hitting a fresh six-year high.
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