Certification of 737 MAX airliners led to an increase in Boeing quotes

On December 3, shares of The Boeing Company (BA) rose by 7.54% to $202.38. The reason was the message that China may soon allow flights of 737 MAX airliners again. The possible resumption of Boeing 737 MAX flights is not news since the aircraft manufacturer announced this two weeks ago. 

Then the head of Boeing’s commercial aviation division, Stan Diehl, said that China could return the 737s to the sky again shortly. Little importance was attached to this statement, probably mistaking it for an expression of hope rather than fact. 

However, this week it became known that the Civil Aviation Administration of China (CAAC) provided a list of changes that Boeing needs to make to the operating manual and the technical part of the aircraft for the 737 MAX to be allowed to fly again. 

At the same time, that to eliminate dangerous miscalculations, it is enough to make “corrective actions.” Among the required changes is a software update, mandatory for all Chinese operators of the 737 MAX. The list is long, but it seems to be final, that is, 

Boeing can count on resolving the problem, which, together with COVID-19, brought the company a loss of almost $ 12 billion. Most countries have already opened the skies for the 737 MAX by re-certifying. If China does this, more than 100 737 MAX planes belonging to Chinese airlines will take to the skies. In addition, about a hundred more have. 

Boeing has not had new orders from China for four years, so the news of the return of this market may give an additional positive impetus to BA quotes. In total, Boeing has 370 assembled 737 MAX airliners; within two years, the company will be able to deliver a significant number of aircraft to customers.