For the first time in over four years, a Boeing (NYSE:BA) 737 MAX seems to have flown in China. The prospect of the company’s jet resuming operations in the world’s most important market prompted Boeing stock (NYSE:BA) to rise as high as 4.6% on Monday morning.
So, What Happened to Boeing Stock?
The 737 MAX from Boeing has caused a lot of upheaval among investors and many problems for Boeing stock (NYSE:BA) . When the aircraft first flew in 2017, it was touted as having the potential to be the most successful model in aviation history, but two deadly accidents resulted in a March 2019 grounding and a series of investigations into Boeing engineering and quality control.
After 18 months on the ground, the jet was permitted to resume operations in the United States and others, but China has yet to recertify it. In recent months, there have been claims that China, the world’s biggest aviation market in terms of new jet sales, is close to approving the MAX, but geopolitical tensions between the United States and China have created doubt.
According to flight monitors, a Boeing 737 MAX piloted by MIAT Mongolian Airlines arrived in Guangzhou, China, on Monday morning, marking what looks to be the first commercial 737 MAX flight across Chinese airspace since the grounding in March 2019.
A foreign carrier flying the 737 MAX is distinct from Chinese carriers using the jet, although it has been perceived positively by markets.
So, what now?
Boeing had no comment on the trip, stating in an emailed statement that the firm is “working with global authorities and our customers to safely restore the 737 MAX to service globally.” That prudence seems to be warranted. This is a positive step, but it is just one step.
The presumption remains that the MAX will be approved to return to service at some point. The only uncertainty is the time. Furthermore, with Chinese airlines halting capacity development due to COVID-related limitations and a declining economy, there is less desire to add new aircraft to the fleet.
Boeing will have its work cut out for it as it attempts to restart regular delivery schedules after the epidemic. A reopening in China would be beneficial, but the aerospace giant faces a multiyear recovery and persistent uncertainty about the global economy’s health. This implies that investors do not need to hurry in and follow this surge.
Featured Image- Megapixl @ Vladsseven
Author Okoro Chinedu 
