Boeing recently announced that approximately 90% of its 737 MAX jets in China have returned to commercial operation by the end of June. This update, shared on their official WeChat account, is a significant milestone after a long hiatus caused by safety concerns.
Road to Recovery for 737 MAX Jets
Following a series of unfortunate events, all of Boeing’s 737 MAX aircraft in China were grounded. The action took place in response to the devastating crash of an Ethiopian Airlines-operated 737 MAX jet in March 2019, marking the model’s second deadly accident in just five months. At the time, Chinese carriers grounded all 96 jets they had in their possession.
The path to recovery began in January when state-owned China Southern Airlines became the first carrier in the country to reintroduce the 737 MAX into service. According to Boeing China’s president, Sherry Carbary, other airlines have been progressively bringing the model back into operation since then. By April, Boeing estimated that half of China’s MAX fleet was back in service.
In a more recent update, Carbary shared, “By the end of June, about 90% of China’s 737 MAX fleet had resumed commercial operations, with some of the aircraft placed on regional international routes connecting domestic cities to a number of destinations in Central Asia and Southeast Asia.”
Market Struggles and the Path Forward
Despite this progress, Boeing still faces challenges in China, a critical market where it has been losing ground to its main competitor, Airbus. This setback is partially due to the ongoing geopolitical tensions between the United States and China.
Boeing’s commercial business head recently stated that the company is not expecting to resume China deliveries in the immediate future. This comes after a statement last year that Boeing was discussing the possibility of remarketing jets intended for Chinese customers.
However, not all is grim. In April, the aviation regulator in China released a report that Boeing considers a crucial step toward resuming the delivery of its bestselling 737 MAX jets. At that time, Boeing had over 130 completed MAX jets in inventory for Chinese customers.
The news of the resumption of the 737 MAX operations in China led to a 1.3% increase in Boeing’s shares in U.S. premarket trading, indicating investor confidence in the company’s recovery.
As the global aviation industry strives to bounce back from its most challenging period, Boeing’s progress with its 737 MAX fleet in China is undoubtedly a significant stride forward.
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