By Callum Keown
Boeing's start to the new year is going from bad to worse.
The much-anticipated return of 737 MAX deliveries to China has been hit with further delays following the emergency incident onboard an Alaska Airlines flight earlier this month, The Wall Street Journal reported Monday.
Chinese airlines don't operate MAX 9 jets--the aircraft flown by Alaska when a panel blew off in midair on Jan.5, which has subsequently been grounded by the Federal Aviation Administration.
But the incident has clearly caused concern in China, which was poised to resume deliveries of other aircraft in the 737 MAX family. Deliveries were suspended by Beijing in 2019 after two fatal crashes of 737 MAX 8 aircraft.
China Southern Airlines is planning additional safety inspections on undelivered MAX jets, the Journal reported, citing people familiar with the matter. The carrier had been preparing to receive Boeing planes as early as this month. It's one of a number of Chinese carriers awaiting undelivered Boeing jets.
China's aviation regulator has also called for the country's carriers to carry out extra safety inspections, the report added.
Boeing's problems closer to home are also mounting. The FAA further extended the MAX 9 grounding Friday and said it needs more data before it can allow the aircraft to return to the skies. Alaska Airlines continues to cancel around 20% of daily flights, and United Airlines around 7% as a result of the grounding.
The regulator's action doesn't stop there. It increased its oversight of Boeing's production and manufacturing operations Friday, a day after launching an investigation into the company following the Alaska Airlines flight.
"It is time to re-examine the delegation of authority and assess any associated risks," FAA administrator Mike Whitaker said Friday. "The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk. The FAA is exploring the use of an independent third party to oversee Boeing's inspections and its quality system."
Boeing stock has fallen 16.5% so far in 2024, while its European rival Airbus is up 6%. Alaska Air is down 10% and United stock is 3.6% lower this year.
Boeing declined to comment and China Southern Airlines did not immediately respond to a request for comment Monday.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 15, 2024 05:39 ET (10:39 GMT)
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