"After last week the market is in a little bit of a digestion phase. Underneath the surface what you're seeing continue is the reflation trade," said Lerner.
Using the Chinese-made ARJ-21, the nation's main aircraft maker seeks to bolster the utilisation of domestically produced planes, in an effort to compete with international aviation behemoths such as Airbus and Boeing.
China seeks to leverage the nation's massive aviation network and growing domestic market to gain a larger chunk of the global aviation services industry.
The latest announcements will shrink headcount down to 130,000 from 160,000 in January of this year, a drop of nearly 19 percent in less than two years.
The jet has been grounded since March 2019 following two deadly crashes. US aviation regulators oversaw a test flight of the jet late last month, but have yet to recertify the plane to resume service.