China Says 'Yes' To Boeing — 737 Max Back In Business Amidst US Scrutiny
Portfolio Pulse from Benzinga Neuro
China has given Boeing Co (NYSE:BA) approval to resume deliveries of its 737 MAX 8 aircraft to Chinese customers, ending a two-year suspension. The first 737 MAX 8, registered to China Southern Airlines (NYSE:ZNH), is currently grounded in Hawaii. This comes as Boeing faces FAA restrictions on expanding production of its narrowbody planes due to a recent cabin panel blowout incident on a 737 MAX 9 jet operated by Alaska Airlines. The resumption of deliveries in China could help Boeing amid its operational challenges and ongoing US scrutiny.
January 25, 2024 | 1:38 pm
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POSITIVE IMPACT
Boeing Co receives approval from China to resume 737 MAX 8 deliveries, potentially easing operational pressures despite FAA restrictions on production expansion.
The approval from China is a significant positive development for Boeing, likely to have a favorable impact on its stock in the short term as it opens up a key market for deliveries. However, ongoing FAA scrutiny and broader US-China trade tensions may temper gains.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
China Southern Airlines is set to receive its first 737 MAX 8 from Boeing since the lifting of the import suspension, indicating potential operational expansion.
As the recipient of the first 737 MAX 8 delivery after the suspension, China Southern Airlines may experience positive investor sentiment, potentially boosting its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80