Boeing 737 deliveries to China still halted amid restart reports

Boeing Co. says its jet deliveries to China remain halted as regulators there scrutinize the design of a new, 25-hour cockpit voice recorder used in aircraft including the 737 Max and 787 Dreamliner.

The planemaker provided a statement clarifying the status of its aircraft exports to China after Shenzhen TV reported that jet deliveries had resumed, citing Boeing China President Liu Qing. Boeing shares rose as much as 3.9% during Monday’s trading session as investors cheered the prospect of the latest delivery freeze ending.

“We are working with our Chinese customers on the timing of their deliveries as the Civil Aviation Administration of China completes its review of batteries contained within the 25-hour cockpit voice recorder assembly unit,” Boeing said in an emailed statement on Monday. 

The US Federal Aviation Administration has certified the new cockpit voice recorder system, which is powered by lithium-ion batteries. The design has also been accepted by Europe’s main aviation regulator, Boeing said, declining to comment about the issue further, deferring to regulators.

The US planemaker in late May said that deliveries to customers in the mainland had stopped again, contributing to its financial woes. Handovers to China are a vital source of cash for Boeing. The market is also key to whittling down the company’s stockpile of already-built 737 Max planes, inventory stemming from a global grounding triggered by two fatal crashes in 2018 and 2019. 

Sunday’s Chinese state media report suggested latest delivery pause had reversed in recent days, and cited Boeing’s Liu as saying China’s aviation market had huge potential. 

Boeing had only resumed deliveries of the 737 Max to China in January, nearly five years after Beijing banned the aircraft from flying in the wake of the deadly crashes in Indonesia and Ethiopia. 

The planemaker has also come under fire from regulators, lawmakers and airlines following a January accident in which a fuselage panel blew off a 737 Max mid-flight.