In China, Boeing has good news about the market

The shares of the company that makes planes went up because there are signs that the most popular airliner, made by The Boeing Company (BA), will return to the Chinese market. As was already said, Boeing’s order book is slowly getting back to where it was before the COVID-19 crisis. But there is still a problem from before that led to the Boeing 737 MAX airliner not being able to fly.

The company had high hopes for this plane, and by now, it should have set a record for how many of the same model of plane it has sold. But after the plane crashes in 2018 and 2019, flights on the 737 MAX were stopped, and Boeing started to lose a lot of money on this project. In the last five years, Boeing’s debt has grown by 400% because sales and maintenance of the 737 MAX haven’t brought in enough money. There are already 737 MAX flights in a number of countries, including the United States.

But at the end of 2021, China asked Boeing to make changes and give pilots more training. Because of this, the process of giving the 737 MAX back to Chinese airlines took longer than expected. This week, it was reported that China Southern Airlines, which has the most 737 MAX planes in its fleet, has begun test flights. This could be a sign that the 737 MAX planes will soon be back in commercial service. Twenty percent of Boeing’s commercial planes are delivered to China, and the 737 MAX is a must-have for domestic flights.All Chinese airlines will be able to fly 737 MAX planes again, which will be good for the stock prices of VA.

But the project to fix up the 737 MAX won’t be done just yet. To meet demand, the updated airliner needs to be shown to be reliable, new contracts need to be signed, and production needs to go up. And only after that will Boeing get the money it needs to pay back the 737 MAX project’s debts.