Shares of SpiceJet slipped as much as 7.99 per cent to Rs 72.50 in the early trade on Wednesday after the Directorate General of Civil Aviation (DGCA), India’s aviation regulator, grounded Boeing 737 MAX planes following the fatal crash of a plane of the same model in Ethiopia that killed 157 people.
However, the stock regained some of the lost ground and ended the session at Rs 77 levels on the BSE, down 2.1 per cent, as compared to 0.6 per cent rise in the S&P BSE Sensex.
“Passenger safety remains our top priority. We continue to consult closely with regulators around the world, airlines, and aircraft manufacturers to ensure passenger safety,” the Ministry of Civil Aviation tweeted late Tuesday night. “These planes will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations.”
Jet Airways and SpiceJet operate Boeing 737 MAX 8 aircraft.
There are 18 Boeing 737 Max planes in India — 13 of them with SpiceJet and five with Jet Airways. Jet’s Max planes are grounded because of non-payment of lease rent, while SpiceJet said it had suspended the aircraft’s operations after the DGCA’s decision. CLICK HERE TO READ FULL REPORT
A raft of countries have issued a blanket ban on the 737 Max aircraft, following the crash. As a result, shares of Boeing took another beating on Tuesday on the US stock markets. Boeing shares fell 6.1 per cent in the overnight trade, bringing losses to 11.15 per cent since the crash, the steepest two-day loss for the stock since July 2009. The drop has lopped $26.65 billion off Boeing’s market value, Reuters reported.