China Eastern crash could set back Boeing’s China recovery, return of 737 MAX

  • 737 MAX has yet to return to service in China
  • China Eastern has grounded 737-800 fleet -state media
  • Chinese public may be wary of flying on 737s

March 22 (Reuters) – The deadly crash of a China Eastern Airlines 737-800 could set back Boeing’s efforts to regain ground in the world’s biggest aircraft market and deliver more than 140 737 MAX jets already constructed for Chinese customers.

The 737-800 that crashed on Monday does not have the equipment that led to 737 MAX crashes more than three years ago, but that may not make a difference to Chinese passengers and a national regulator known for scrupulous safety requirements.

China Eastern said the cause of the crash was under investigation. Such accidents typically involve multiple factors, and experts warned it was far too early to draw any conclusions on the potential causes, especially in light of the scarce information available.

China was the first country to ground the 737 MAX after fatal crashes in Indonesia and Ethiopia more than three years ago, and it is the only major market where the MAX has not resumed commercial flights.

Boeing’s shares closed 3.6% lower on Monday. Boeing declined to comment on whether the crash could delay a business recovery in China, while China’s aviation regulator did not respond immediately to a request for comment.

The 737-800 that crashed is an earlier model with a strong safety record and there are nearly 1,200 in service in China, making it the world’s largest market for the plane, according to aviation consulting firm IBA.

More than 4,200 737-800s are in service globally, data from aviation firm Cirium shows.

Reuters
Photo Marcel van Leeuwen