Boeing Provides Update on 737 MAX Jets
Boeing shares an update on the return of its 737 MAX jets in China, while investors express concerns over recent news developments.
Boeing recently shared a positive update regarding its 737 MAX jets, but investors may still have concerns over recent news developments.
According to Boeing's China CEO Liu Qing, all approximately 100 737 MAX planes operated by Chinese airlines are now back in operation. Additionally, Boeing has delivered new planes to Chinese clients in 2023, although the specific models were not disclosed (Reuters).
The global grounding of the 737 MAX in 2019, following two fatal crashes, caused the model's return to service to be delayed. While most countries resumed operations the following year, Chinese airlines only resumed operations in January 2023.
This news is certainly encouraging and hints at a potential resumption of 737 MAX deliveries in China in 2024.
However, this positive development may be overshadowed by recent news that the Federal Aviation Administration (FAA) is closely monitoring inspections of 737 MAX planes for a potential loose bolt in the rudder control system. In response, Boeing has urged operators to conduct inspections for possible loose hardware on its newer single-aisle planes (FAA statement).
This precautionary measure comes after an international operator discovered a bolt with a missing nut during routine maintenance. Boeing also identified another undelivered aircraft that had a nut not properly tightened.
"The issue identified on the particular airplane has been remedied," stated a Boeing spokesperson. "However, as a precaution, we are recommending that operators inspect their 737 MAX airplanes and report any findings to us."
Based on future discoveries of loose or missing hardware, the FAA has not ruled out the potential for additional action to be taken.
Boeing's stock experienced a slight decline of 0.7% on Thursday and is currently down 0.2% during premarket trading on Friday. Despite this dip, the shares have seen a significant increase of 37% in 2023. In comparison, European plane manufacturer Airbus has seen a 26% increase this year.