(Bloomberg) -- Boeing Co. said it has resumed deliveries of its cash-cow 737 Max aircraft to airlines in China, a much-needed boost for the beleaguered manufacturer and its strained finances.
The green light comes after a roughly two-month pause imposed by aviation regulators in China to review additional information about batteries used in cockpit voice recorders in Boeing’s planes.
Reopening the Chinese market to Boeing’s top-selling aircraft will help alleviate some of the pressure on the company’s finances. The planemaker has said it expected to burn through $3.9 billion or more in the second quarter, with the China delivery halt a contributing factor.
Boeing as of late June was expected to receive clearance for 737 Max deliveries to China within weeks, people familiar with the matter told Bloomberg at the time. Aviation Week reported Tuesday’s resumption earlier.
Boeing shares were little changed in after-hours trading on Tuesday. They are down 28.5% this year.
The China news is a glimmer of good news for a company grappling with leadership upheaval after being forced by US transport regulators to slow production over concerns around its manufacturing safety standards tied to the Alaska Air 737 Max door blowout.
The resumption of deliveries eases a temporary blockade into what is ordinarily Boeing’s biggest export market. That status was disrupted in 2019 when China suspended acceptance of the US-made jets after two fatal 737 Max crashes in Indonesia and Ethiopia. Beijing lifted the halt in January, ending a five-year freeze.
At the start of this month, China gave Boeing permission to restart deliveries of its 777 jets.
(Updates with more background and context throughout.)
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