Boeing Co. Stock Rises After Chinese Aviation Authorities Confirm 737 MAX Meeting

Boeing Co.

Tuesday saw a slight decline in the price of Boeing Co. (NYSE:BA) shares after Chinese aviation authorities acknowledged a meeting with company executives to discuss reintroducing the 737 MAX into service in the most significant aircraft market in the world. 

CAAC Meeting with Boeing Co.

The 737 MAX was grounded in February 2019. Still, China’s Civil Aviation Authority (CAAC) revealed on Tuesday that it met with Boeing executives last week in Beijing as part of ongoing efforts to let its aircraft resume operations in Chinese airspace. 

Boeing Co. (NYSE:BA) CFO Brian West also suggested the company could ‘remarket,’ or sell some of the 140 planes destined for China to other customers worldwide if regulators continue to delay its approval. Last week, shortly after the CAAC meeting, Boeing CEO Dave Calhoun said he felt there was “a chance” that regulators would clear the 737 MAX 10 before the end of the year. 

After months of negotiations, the CAAC released an “airworthiness directive” on December 2 of last year that instructed airline operators on what modifications must be made to the 737 MAX before the aircraft can be used in fleet operations but has yet to issue final certification. 

“We have put off decisions on those planes for a very long time,” West said at a Washington-area business gathering. “We cannot continue to put off that choice. So, we’ll start reselling some of those aircraft.” 

At midday on Tuesday, Boeing Co. (NYSE:BA) shares were trading 1.8% higher at $147.52 per share. 

In late July, Boeing reported a second-quarter loss of 37 cents per share, more significant than expected, on $16.7 billion in revenue. However, operating cash flow increased to about $100 million for the quarter, and the company predicted it would begin to generate cash flow in 2022. 

According to the business, Boeing Co. (NYSE: BA) has a backlog of orders for over 4,200 commercial aircraft with a list price of about $372 billion.

Featured Image:  Megapixl © Theguitarmann

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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.