Boeing 737 MAX Aircraft Heading To Assembly Plant In China

MAX has not been operating in China for three years.
The return was expected early this year.
China historically accounted for 17% of shipments – Jeffreys

BEIJING/SYDNEY, March 15 – A Boeing (BA.N) 737 MAX aircraft that took off from Seattle on Monday is on its way to a manufacturer’s factory in China, an industry source said, a sign that the model is approaching. return to commercial flying there after a three-year landing.

Flight tracking websites showed that the aircraft, painted in the livery of Shanghai Airlines, a subsidiary of China Eastern Airlines (600115.SS), landed in Hawaii.

A source not authorized to speak publicly said it was the first refueling on a multi-day trip.

The Zhoushan plant, which was used to install interiors ahead of delivery, opened in December 2018, months before a second fatal MAX crash caused China to shut down the model.

“If this indicates a shipment, this would be the first MAX shipment to China since March 2019, which is significant as that country has historically accounted for 17% of shipments,” Jefferies analysts said in a note to customers.

China, the first country to ground the MAX, is the only major global market where the plane is still not in commercial service and is taking longer than expected to return at a time when domestic demand is down as COVID-19 cases rise .

China’s aviation regulator in early December provided airlines with a list of fixes needed to return to commercial flights, which it predicts will happen by early this year. More

However, only test flights have been conducted so far, which has also delayed deliveries of more than 100 MAX aircraft already built for Chinese customers that are at Boeing sites in the United States. More

Boeing CEO David Calhoun said Jan. 26 that his company is preparing to deliver the jets as early as the first quarter, once the fleet already in China returns to service.

Boeing declined to comment on the MAX flight to Zhoushan.

The aircraft manufacturer said in a statement that it continues to work with regulators and customers to bring the MAX back into service around the world.

Chinese airlines are in no hurry to return MAX due to falling domestic demand amid the biggest outbreaks of COVID-19 in two years, three people familiar with the matter told Reuters on condition of anonymity because they are not authorized to speak publicly.

“Now there is no need to add capacity,” said one of the people.

China Southern Airlines (600029.SS) is among the Chinese airlines closest to returning the aircraft to commercial service and may be the first to do so, the source said.

China Southern did not immediately respond to a request for comment.

Reporting by Stella Qiu in Beijing and Jamie Frida in Sydney; additional reporting by Norihiko Shiruzu in Beijing and Eric M. Johnson in Seattle. Editing: Christopher Cushing, Kenneth Maxwell and Jerry Doyle

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