Boeing On Track To Restart 737 MAX Deliveries In China After Regulatory Clearance: Report
Portfolio Pulse from Benzinga Neuro
Boeing Co (NYSE:BA) has received approval from China's Civil Aviation Administration (CAAC) to move forward with resuming 737 MAX deliveries in China, which had been halted since 2019 following two fatal crashes. The approval is a crucial step, but individual aircraft deliveries still require clearance from China's National Development and Reform Commission (NDRC). This progress, along with a recent order from Lufthansa Group for up to 100 737 MAX jets, suggests a growing confidence in the aircraft and is a positive sign for Boeing's recovery, especially considering China's significant share in the global aircraft demand.
December 21, 2023 | 4:21 am
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Boeing Co has received regulatory approval from CAAC to resume 737 MAX deliveries in China, a crucial market for the aerospace sector. This development, coupled with a recent large order from Lufthansa, indicates a potential rebound in confidence and demand for the 737 MAX.
The approval from CAAC is a significant step in resolving the 737 MAX crisis for Boeing, potentially leading to resumed deliveries in the Chinese market. This is likely to have a positive impact on Boeing's stock in the short term as it signals progress in one of the largest markets for commercial aircraft. The recent order from Lufthansa also supports the view that confidence in the 737 MAX is improving, which could lead to increased sales and positive stock momentum.
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