UPDATE 1-Boeing resumes 737 MAX test flights

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May 12 (Reuters) - Boeing Co said on Friday it resumed test flights of its $110-million 737 MAX 8 jetliner, just two days after saying it had grounded the entire fleet to address an engine problem.

The resumption of flights, which Boeing said was backed by air safety regulators, is good news for the plane maker and engine-maker CFM International, a joint venture between General Electric Co and Safran SA of France.

CFM had said flaws in the forging of a disc inside the engine could have led to cracks.

Boeing grounded the fleet late last week, and announced it on Wednesday, just days before it planned to deliver its first 737 MAX 8 to an airline.

Inability to fly the plane could have threatened Boeing's ability to deliver the new jetliners on time.

Boeing said a 737 MAX 8 took off around 12:15 pm Pacific Time on Friday.

"Our plan remains to start deliveries this month," Boeing spokesman Doug Alder said. "Regulatory agencies support this action."

Boeing's shares were trading nearly unchanged at $183.26. (Reporting by Alwyn Scott in Seattle and Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila)