In that flight, the 737 Max 8 plane crashed soon after taking off from Addis Ababa, Ethiopia en route to Nairobi, Kenya.
The action comes on the heels of the Ethiopian Airlines flight 302 crash on Sunday morning that killed all 157 people onboard.
The airline confirmed in a statement that one of its Boeing 737 passenger jets on a regularly scheduled flight between the Ethiopian and Kenyan capitals was involved in an "accident".
The CEO further disclosed that Boeing 737 Max-8 plane underwent a routine maintenance on February 4, 2019.
The CAAC said it would inform its airlines about ending the suspension after contacting the US Federal Aviation Administration (FAA) and Boeing representatives to ensure flight safety.
Ethiopia Airlines later confirmed that there were no survivors.
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The crash occurred around Bishoftu, or Debre Zeit, some 31 miles south of Addis Ababa, at 8:44 a.m.
The cause of the crash remained unknown on Sunday morning.
Ethiopian Airline has said it is establishing a passenger information centre and telephone number will be available for family or friends of those who may have been on flight ET 3002/10 March.
Numerous passengers were from Kenya, but others were said to be from Italy, France, the US, Egypt, the Netherlands, Slovakia and India.
The paper noted that the model was the same as Lion Air Flight 610, which also crashed shortly after takeoff in late October 2018 in an incident that killed 189 people on board.
State-owned Ethiopian is one of the biggest carriers on the continent by fleet size.