Boeing 737 Resumes Deliveries to China... Regulatory Authorities Seem to Have Completed Battery Review

The delivery of Boeing aircraft to China, which had been suspended due to parts investigations by regulatory authorities, has resumed.

On the 24th, China's state-run media Global Times (GT) reported, "We have confirmed that Boeing has resumed deliveries of the 737 Max to Chinese airlines," adding, "This is progress following a temporary suspension." Previously, Chinese aviation regulatory authorities had halted aircraft deliveries for about two months due to information related to the batteries used in Boeing's cockpit voice recorders.

[Image source=Reuters Yonhap News]

Qi Qi, an aviation analyst, explained, "This is a natural step following the completion of the Chinese authorities' review of the aircraft equipment," and added, "From the perspective of Chinese airlines, it could help alleviate the shortage of air capacity in the medium to long term."

Since two crashes involving Boeing 737 aircraft in 2019, deliveries to China had been intermittent. However, when a 727 Max was delivered to Baiyun International Airport in Guangdong Province, southern China, in January, it seemed the five-year cooling-off period had ended.

However, in May, the Civil Aviation Administration of China (CAAC) requested additional information regarding the batteries, forcing Boeing to halt deliveries again. The market interpreted this as a fallout from the supply chain conflicts between the U.S. and China affecting Boeing. Boeing's total orders for the first half of the year stood at 156, a 70% decrease compared to the previous year, and Boeing's stock price has fallen more than 28% since the beginning of this year.

Around the time of the delivery resumption, Boeing also released an improved market outlook. Boeing increased its forecasted demand for commercial aircraft over the next 20 years from 42,595 units in 2023 to 44,000 units. It also predicted that China would become the largest single-country market. GT explained, "The recent movement in aircraft deliveries occurred after a delegation from the U.S.-China Business Council (USCBC) board visited China recently."