China aviation regulator approves Boeing 737 MAX as airworthy

Joe Raedle/Getty Images News

• Boeing (NYSE:BA) +5.3% and supplier Spirit AeroSystems (NYSE:SPR) +6.4% pre-market after the 737 MAX regained airworthiness approval from the Civil Aviation Administration of China, a major step forward for the jet's return to service in the country after being banned for more than two and a half years.
• The airworthiness directive orders certain software installation and a revision of the flight manual, among other changes, but does not specify when China would allow flights to resume.
• The CAAC, which was the world's first regulator to ground the MAX in March 2019 after two deadly crashes, says it completed a review of the design changes proposed by Boeing.
• "After conducting sufficient assessment, CAAC considers the corrective actions are adequate to address this unsafe condition," the regulator says.
• Chinese airlines have ~100 MAX jets, with hundreds more on order from Boeing and aircraft leasing companies.
• Boeing has been aiming toward winning Chinese approvals for the MAX by the end of the year, with deliveries expected to resume in Q1 2022, CEO David Calhoun said in October.

Comments

[vassille]

Interesting pre-market trading in BA this morning. Looks like someone wants to push the price down, unless I’m missing news that have not hit the tape yet. China will certify the Max, so BA stock is a good value going forward pass this virus news.

[vortex generator]

@vassille The news on the FAA AD requirements for 787's already in service....

[vortex generator]

I wonder what additional piece of software is being required?

[blorber]

CAAC probably milked BA for all the technical info they could so they could pass onto COMAC to build their own.

Clock is ticking on BA before they lose all of China as a customer.

[kevinconnolly]

@blorber Senior, So SAD your comment and hopefully not true. If China wants to take over first spot from the asleep at the switch Americans the last 30 years) them they have to throw a bone to the rest of the Global business world!!

[vassille]

@blorber
Building a commercial plane by China is not impossible but who is going to buy it outside China?
Building commercial planes just for China by China only is not efficient.
Ask the Russians they can build planes too

[blorber]

@vassille China is a HUGE market to lose and a large part of BA projected "skyline".

[magenta17]

How would they know like they're the experts? Pilots for Chinese airlines have to be ranked right up there as some of the worst in the world! At least when we traveled to China years ago! Longz BA! :-)

[Djreef1966]

Now, the fun part. Parlaying this into sales.

[Lincoln Durey]

@Djreef1966 approx 125x 737max are already sold and built for China, parked in the states. Only need the Chinese airspace open to fly them in and hand over the keys for cash.

[SMF_USR]

@Lincoln Durey keys? Come to think of it.. wow… never thought about it … how do they turn it on? Lol. Gonna hop on Quora

Long BA but absolutely shitty management and constant problems. Chinese are gonna drag every order out and demand and get ridiculous discounts. Omicron could not have come at a worse time. Powell going all Xi hammering down equities. This stock ain’t gonna soar anytime soon I’m afraid.

[Adambombfx]

YES ! this was just a matter of time................

BA LONG !!

[prudent 576]

Excellent, long SPR, still waaayy below normal pre-COVID crash price level.