Eric M. Johnson, Jamie Freed

(Reuters) – The fatal crash of a China Eastern Airlines 737-800 may have repercussions for Boeing’s (NYSE) efforts to regain market share in the largest aircraft market. It could also mean that Boeing will not be able to deliver 140 737 MAX planes built specifically for Chinese customers.

Although the 737-800 aircraft that crashed Monday did not carry the same equipment as 737 MAX, it was still operated by a Chinese regulator that is well known for its strict safety standards.

China Eastern stated that the accident was being investigated. These accidents are often caused by multiple factors. Experts warned that it was too early to draw conclusions about possible causes.

China became the first nation to ground the 737 MAX following fatal crashes in Indonesian and Ethiopia three years ago. It is also the largest market for which the MAX has never resumed commercial flight.

Sources in the industry said that a Boeing 737 MAX designed for China Eastern subsidiary Shanghai Airlines flew from Seattle to Zhoushan, last week. It was bound for Boeing’s completion facility in Zhoushan, which is a signal of China’s near return to service.

According to FlightRadar24, the plane arrived in Guam as part of a multileg trip and hasn’t moved since. Boeing did not respond to our request.

Colin Scarola from CFRA Research is senior equity analyst and said he was not surprised by the delay in the MAX’s return to China. China’s regulator for aviation safety has an excellent reputation.

Industry sources claim that Chinese airlines are not in need of new MAX jets as demand has dropped following China’s largest COVID-19-related outbreaks. A source familiar with the situation said that the U.S. manufacturer had more than 140 MAX planes built for Chinese customers and is waiting to deliver them once it returns to commercial service.

Boeing shares ended Monday 3.6% below their previous close.

According to IBA, the 737-800 plane that was lost in the crash is an older model, with a good safety record. There are almost 1,200 of these aircraft in China. China is the largest market for this type of plane.

Data from Cirium, an aviation company, shows that more than 4200 737-8800s are currently in use around the world.

China Eastern grounded its fleet 737-800s. State media reported. China Eastern is sixth largest operator of this type with 89 aircraft, according to IBA. However, other Chinese airlines continue to fly these jets while China Eastern does not have its 737-700s.

The Jefferies analysts stated that China’s aviation regulator would not ground the 737-880 fleet of planes unless it suspected an operational problem. That is because China has grounded more than 1000 aircraft in China, the second-largest domestic aviation market.

The Chinese public may be tempted to not fly on 737-8800s while the causes of the crash are determined.

He said that it was crucial to determine the reason for the crash.

Boeing cancelled a meeting with its top executives that was scheduled to take place in Miami this week. It wanted to concentrate its attention on China Eastern and the investigation, according to Reuters.

Boeing CEO Dave Calhoun told employees that they have maintained close communications with their customer and regulator authorities ever since the accident. This memo was also seen by Reuters.