BEIJING, CHINA – Boeing (BA) has achieved a significant milestone in its efforts to resume 737 Max deliveries in China. The company received approval from China’s aviation regulator, marking a crucial step toward resuming deliveries of the 737 Max in the country. This comes after a period of grounding for the 737 Max following two deadly crashes in 2019 and reduced air travel demand due to the Covid-19 pandemic.

One sign of progress is the recent delivery of a 787 Dreamliner to a Chinese carrier, the first such delivery in years. This positive development has caused a slight increase in BA stock on Thursday. However, Boeing still requires approval from China’s National Development and Reform Commission to commence 737 Max jet deliveries to individual airlines, according to a report from trade publication Air Current.

China Southern Airlines has reportedly conducted a testing flight for the 737 Max, indicating a higher likelihood of resuming deliveries of the aircraft in the coming months. Boeing has not delivered the 737 Max to a Chinese airline since March 2019, and it wasn’t until January 2023 that domestic Chinese carriers began flying the Max again, following the grounding and the impact of the pandemic on air travel demand.

Additionally, Boeing delivered a 787 Dreamliner to Juneyao Airlines, marking the first direct Dreamliner sale to a Chinese airline since 2019. The news of these deliveries has boosted investor confidence, with BA stock experiencing a significant increase over the past few months.

This potential resumption of 737 Max deliveries in China has broader implications for the aviation industry, as it would also benefit jet-engine maker General Electric (GE). GE stock has already seen a rise to a fresh six-year high, reflecting the positive anticipation of increased jet deliveries.

The progress made by Boeing in resuming deliveries to China presents a promising outlook not only for the company but also for the broader aviation industry. With increasing demand for air travel and the resumption of aircraft deliveries, the industry is showing signs of recovery from the setbacks of the past few years. This development will drive economic growth, both for Boeing and its stakeholders, as well as for the global aviation market.

In summary, Boeing’s progress in gaining approval for 737 Max deliveries in China marks a significant step forward following the challenges faced by the aviation industry in recent years. This development not only bodes well for Boeing but also indicates a positive trajectory for the broader aviation industry, demonstrating signs of recovery and growth.