China Opens Up Opportunity For Boeing 737 MAX Fleet To Return To Air In The Country After A Two-year Ban

JAKARTA - China's aviation authority on Thursday issued an airworthiness directive to Boeing Co. for the 737 MAX series, which will help pave the way for the model's return to service in China after more than two and a half years.

The directive instructs airline operators on necessary revisions before the MAX returns to service, although it does not specify when China will lift the ban on the MAX in its airspace.

The Civil Aviation Administration of China (CAAC), which was the first regulator globally to ground the MAX in March 2019 after two deadly crashes, said it had completed a review of Boeing's proposed design changes.

"After carrying out an adequate assessment, the CAAC considers corrective action to be sufficient to address this unsafe condition," the regulator said in a statement on its website.

CAAC did not immediately respond to a Reuters request for comment on the next steps needed before the MAX returns to service. The regulator had sought industry feedback last month before issuing the airworthiness directive.

"The CAAC decision is an important milestone for the safe return of the 737 MAX to service in China. Boeing continues to work with regulators and our customers to return the aircraft to service worldwide," Boeing said.

Boeing CEO David Calhoun said in October the company was working to regain China's approval by the end of the year for the 737 MAX fleet to fly again, with deliveries expected to resume in the first quarter of 2022.

To note, about a third of the roughly 370 737 MAX fleets that were not delivered in warehouses were orders from Chinese customers, Boeing said at the time.

China's authorization of the 737 MAX is very good news, which will support the recall of undelivered MAX inventory, Safran CEO Olivier Andries told reporters. Safran makes the MAX engine as part of CFM International's joint venture with GE (GE.N).

Before the 737 MAX was grounded, Boeing sold a quarter of the planes it made annually to Chinese buyers, its biggest customer.

Beyond security concerns, Boeing's sales in China have been hobbled by US-China trade tensions, with Washington accusing Beijing of blocking purchases of Boeing planes by its domestic carrier.