Gloomy Boeing 737 MAX made its first flight to China after a plane crash

Gloomy Boeing 737 MAX made its first flight to China after a plane crash

By Ray Johnson

Budriganenws.com – An Airbus (NYSE:) The U.S. planemaker’s attempt to reestablish itself in the world’s second-largest aviation market was marked by Co 737 MAX’s first passenger flight in China in nearly four years on Friday.

According to the flight tracking website FlightRadar24, the domestic flight operated by China Southern Airlines Co. Ltd. between Guangzhou and Zhengzhou took off with a MAX plane at 12:45 p.m. (04:45 GMT).

After fatal crashes in Indonesia and Ethiopia in March 2019, the best-selling Boeing model was grounded. However, after modifications to the aircraft and pilot training, it returned to service around the world in late 2020.

China is the last major market where the MAX has been flown again despite ongoing tensions over trade with the United States. The return comes as domestic travel demand picks up after China abandoned its zero-COVID policies.

In an indication that the first nation to ground the model following the crashes was loosening its regulations, foreign airlines began flying the MAX to China in October 2022.

The 737 MAX was supposed to return to commercial service in October 2022, but China Southern did not use it on the planned flights.

According to Cirium data from 2019, Chinese airlines had 97 of the narrowbody planes before they were grounded. The model is most popular in China, with 50 orders placed and 34 delivered by China Southern.

In October, Boeing stated that it had 138 more planes made for Chinese airlines and waiting to be delivered in the United States. Given that there were no clear indications that Chinese airlines would accept the planes in the near future, it stated that it had begun remarketing the aircraft to other airlines.

In 2022, China’s domestic aviation market was depressed as a result of periodic COVID-19 lockdowns; however, demand is increasing now that COVID controls have been abandoned.

Jason Gursky, an analyst at Citi, said that Boeing’s return to the MAX was the first step in normalizing its operations in China and could lead to the delivery of new planes.

In a note to clients on Wednesday, he stated, “Boeing suggested at its November 2022 investor day that its long-term financial targets do not contemplate deliveries of new aircraft into China,” adding that a change in that circumstance would make the company’s targets significantly less risky.

(OTC:) Boeing has been significantly behind Airbus SE. due in large part to the MAX grounding in deliveries to the largest aircraft market in the world.

China received eight airplanes from Boeing and over 100 from Airbus in 2022.

Since 2017, Boeing has been virtually barred from receiving new orders from China, whereas state-owned airlines placed a massive order for nearly 300 Airbus aircraft the previous year.

The Chinese-made C919 narrowbody jet, which was certified last year, presents a new threat to both Western manufacturers in the market. However, it will take time to ramp up production.

More New U. S. Foreign Economic Policy towards African countries