Aerospace giant Boeing (NYSE:BA) will see a delay in 737 MAX deliveries to China after the Alaska Airlines incident, according to a Wall Street Journal report. The report stated that China Southern Airlines has delayed the deliveries of Boeing’s Max airplanes for more safety inspections.
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Moreover, China’s aviation regulator has asked Chinese airlines to conduct precautionary safety checks on their Boeing 737 Max jets. Chinese airlines do not have the MAX 9 models in their fleet, and their MAX 8 airplanes do not have the panel involved in the Alaska Airlines accident.
Back in 2019, China suspended orders and deliveries of Boeing’s 737 Max after two fatal crashes in Indonesia and Ethiopia. Boeing recently delivered a 787 Dreamliner to China, hinting at an end to the freeze on Boeing’s Max deliveries.
Meanwhile, Boeing stated on Monday that it will intensify quality checks on the 737 MAX after the fuselage panel incident. The company plans additional inspections and will send a team to assess and approve supplier Spirit AeroSystems’ (NYSE:SPR) work on the plug door involved in the incident before fuselages reach Boeing’s Washington state facilities.
Is BA a Good Buy Right Now?
Analysts remain bullish about BA stock with a Strong Buy consensus rating based on 19 Buys and four Holds. BA stock has gone up by only 2.4% over the past year, and the average BA price target of $279.40 implies an upside potential of 28.3% at current levels.
