Boeing may resume 737 Max deliveries to China after 4 years

The Civil Aviation Administration of China (CAAC) released the second revision of its 737 evaluation report on April 14. The report, seen by Reuters, is said to have been distributed to Chinese airlines, saying the regulator had assessed the plane and that the airlines could repossess the plane if they wanted.

According to another source, the Boeing report considers the “final technical requirement” necessary to resume MAX deliveries. Trade tensions between the US and China could further slow supplies. According to Reuters, the Civil Aviation Authority of China was not available for comment.

Boeing CEO Dave Calhoun mentioned the regulator’s report at the annual shareholder meeting earlier this week. He called it “good progress” and “an important step” to enable future deliveries. “Our customers will decide when they are ready to take delivery of their aircraft,” he added. Boeing has more than 130 completed 737 MAXs in stock for Chinese customers.

Chinese airlines began returning the 737 MAX to service in early January. China Eastern Airlines and China Southern Airlines also said in March they would resume flights this year, without providing further details.

JPMorgan aviation analyst Seth Siefman said it was still difficult to say when China would start accepting 737 Max deliveries again. “This is a geopolitical issue, in my opinion,” he wrote in a statement. “There are some administrative things that need to be done. But I find the whole process very vague,” the analyst said.