Chinese Airlines Resume Operations of All Boeing 737 MAX Jets Ending Global Grounding Since 2019
Portfolio Pulse from Benzinga Neuro
Chinese airlines have resumed operations of all Boeing Co (NYSE:BA) 737 MAX jets, ending a global grounding since 2019 due to two fatal crashes. Boeing China's CEO, Liu Qing, announced that around 100 737 MAX planes are back in service and new planes have been delivered to Chinese customers. The Civil Aviation Administration of China (CAAC) granted approval in December, allowing Boeing to restart 737 MAX deliveries in China after over four years. This marks a potential improvement in Boeing-China relations and is financially beneficial for Boeing as it can now reduce its inventory backlog.
December 29, 2023 | 7:38 am
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POSITIVE IMPACT
Boeing's 737 MAX jets are back in the air in China, with around 100 planes in service and new deliveries made. This follows CAAC's approval, indicating a positive shift in Boeing's business prospects in China and potential revenue growth from reduced inventory.
The resumption of 737 MAX operations in China is a significant development for Boeing, as it not only ends the grounding of the aircraft but also signals a potential thaw in trade relations between the US and China. This could lead to increased orders and revenue for Boeing, positively impacting its stock price in the short term. The confidence in this analysis is high due to the direct correlation between aircraft operations and manufacturer revenue, but it is not absolute as market conditions and other external factors could influence the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100