Boeing shares regained early losses Wednesday after reports the Dow Jones aircraft maker will deliver the 737 Max to China for the first time since 2019. Spirit Aero Systems (SPR) soared after revelations that the Boeing 737 Max 9’s door panel was improperly installed and was not responsible for causing an emergency landing during the crash. alaska airlines (ALK) flight in early January.
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Bloomberg reported Wednesday that Boeing is delivering 737 Max aircraft to China Southern Airlines. This will be the first 737 Max delivered to China since 2019 after the Chinese government banned production of the model following fatal crashes in Indonesia and Ethiopia.
As of September, about 85 Boeing 737s were awaiting delivery to China, the Wall Street Journal reported.
China Southern Airlines announced last week that it will strengthen its safety inspection system for its new Boeing 737 Max aircraft in response to the Alaska Airlines plane panel failure. The jet the airline ordered is not the same version of the 737 Max 9 model, which has been grounded by the US Federal Aviation Administration.
China, a key market for Boeing, is expected to account for 20% of global aircraft demand over the next 20 years, according to Boeing forecasts. The new 737 Max model is key to boosting Boeing’s business in the country.
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Meanwhile, an investigation into the 737 Max 9 revealed that a Boeing mechanic, not an employee of supplier Spirit AeroSystems, improperly reinstalled the failed fuselage panel, The Seattle Times reported. reported.
Anonymous sources cited in the report said the panel was removed for repair and mistakenly reinstalled by Boeing on the final assembly line in Renton. Spirit initially installed the panels at its Wichita, Kansas, site.
If the findings of this investigation are verified by the National Transportation Safety Board, it will place the blame primarily on Dow Jones. NTSB investigators had previously raised the possibility that the key bolt was not properly installed.
Earlier this month, the FAA grounded all 171 Boeing 737 Max 9 planes in service for safety inspections after an emergency landing on Jan. 5. united airlines (UAL) reported on January 8 that loose bolts and other parts were found on five aircraft during door plug inspections of the 737 Max 9.
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Boeing shares rose more than 2% in afternoon trading Wednesday, leading the Dow Jones Industrial Average. This puts the stock just above its 200-day moving average and 19% below its late December high. Shares have fallen this month due to the grounding of the 737 Max 9 and concerns about delivery times.
SPR stock rose 6.8% on Wednesday, just above its 50-day line. Spirit stock has rebounded 92% from its September lows and is back about 10.8% so far in 2024.
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