Thursday, Jan 27, 2022
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Spicejet Reaches Settlement Agreement With Boeing For 737 MAX Aircraft

Spicejet in a regulatory filing to the Bombay Stock Exchange stated that Boeing had agreed to settle outstanding claims and provide for certain accommodations.

Spicejet Reaches Settlement Agreement With Boeing For 737 MAX Aircraft
Spicejet Reaches Settlement Agreement With Boeing For 737 MAX Aircraft -

Low-cost carrier Spicejet announced on Wednesday that it has entered into a settlement agreement with airplane maker Boeing pertaining to the grounding of its 737 MAX aircraft. In a regulatory filing to the Bombay Stock Exchange, the company stated that Boeing has agreed to settle outstanding claims and provide for certain accommodations. 

Spicejet added that the settlement paves the way for induction of the revamped MAX aircraft into its fleet. Additionally, ensuring the resumption of new aircraft deliveries of 155 MAX aircraft. 

The airline in its second-quarter results had mentioned that thirteen of its Boeing 737 MAX aircraft continued to be grounded. It was expecting that the aircraft would be able to resume flying from the third quarter of the current financial year.

The Indian Government had banned the 737 Max from flying in March 2019 after the Lion Air and Ethiopian Airlines crash - both involving Boeing 737 Max. 346 people had lost their lives in the two crashes which took place within five months of unveiling the aircraft. 

In August, this year, the aircraft was allowed to fly again. Directorate-General for Civil Aviation (DGCA) in its order had stated that more than 17 regulators had permitted the airplane to fly again. This was after Boeing undertook corrective measures after being grounded in several countries. 

In August, this year, the aircraft was given permission to fly again. Directorate-General for Civil Aviation (DGCA) in its order had stated that more than 17 regulators had permitted the airplane to fly again. This was after Boeing undertook corrective measures after being grounded in several countries. 

In a separate development on Tuesday, institutional investor Rakesh Jhunjhunwala-backed Akasa Air ordered 72 Boeing 737 Max Airplanes. As per a statement issued by the aircraft manufacturer, the deal is valued at $9 billion. The order includes two variants of the 737 MAX line-up, namely, the 737-8 and the high capacity 737-8-200. 

Akasa Air is expected to resume its operations as a low-cost carrier from summer next year.

Spicejet and Akasa Air are the only airline companies in India to have inducted the 737 MAX aircraft into their fleet.

At the time of publishing, Spicejet was trading 0.90 per cent lower at Rs 77.40

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