You are here: Home » Companies » News
Business Standard

SpiceJet expects to restart Boeing MAX service by September-end

Around 175 countries have allowed the 737 MAX to return to service following a nearly two-year safety ban, with 30 airlines already restarting their MAX aircraft services.

Topics
SpiceJet | Boeing | Boeing 737 MAX

Reuters  |  BENGALURU 

SpiceJet

India's Ltd said on Thursday it expects Co's grounded 737 MAX jets in its fleet to return to service at the end of September following a settlement struck with lessor Avolon on leases of the aircraft.

Around 175 countries have allowed the 737 MAX to return to service following a nearly two-year safety ban, with 30 airlines already restarting their MAX aircraft services.

The resumption of MAX aircraft services in India would be subject to regulatory approvals, said. The country's air safety regulator Directorate General of Civil Aviation did not immediately respond to a Reuters request for comment. Avolon declined to comment.

SpiceJet, which said earlier this month it was in discussions with aircraft lessors of MAX aircraft to restructure present leases, did not provide any further details on the settlement https://www.bseindia.com/xml-data/corpfiling/AttachLive/0c9e7a01-f010-42fe-b8ad-e483856d5903.pdf.

With easing of the travel restrictions and increasing pace of vaccinations, there might be some pick-up in air traffic and SpiceJet's settlement to restart MAX aircraft could help it to get back on track, said Likhita Chepa, senior research analyst at CapitalVia Global Research.

"However, higher ATF (Air Turbine Fuel) prices might hurt margins and operability," Chepa added.

With 13 737 MAX planes grounded, SpiceJet, India's second-largest airline by market share and the only one in the country to fly the aircraft, had said it was in talks with for compensation towards costs and losses it has suffered.

continues to work with global regulators to safely return the 737-8 and 737-9 to service, the U.S. planemaker said in a statement to Reuters, while declining to comment on the compensation.

The ban followed two crashes five months apart which killed 346 people, plunging Boeing into a financial crisis, which has since been compounded by the pandemic.

has fallen 24.4% this year, as of last close.

(Reporting by Rama Venkat in Bengaluru; Editing by Shounak Dasgupta and Krishna Chandra Eluri)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, August 26 2021. 14:59 IST
RECOMMENDED FOR YOU
.