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Spicejet spurts after Boeing 737 Max cleared to fly again

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Spicejet surged 13.04% to Rs 75 after the US Federal Aviation Administration cleared Boeing's 737 Max for flight after a prolonged grounding.

Regulators around the world grounded the Boeing 737 Max in March 2019, after two crashes that killed a total of 346 people in 2018 and 2019. US regulators have cleared the Boeing 737 MAX after a comprehensive and methodical 20-month review process.

In a statement made on Wednesday (18 November 2020), the Federal Aviation Administration (FAA) said: "FAA Administrator Steve Dickson today signed an order (PDF) that paves the way for the Boeing 737 MAX to return to commercial service. Administrator Dickson's action followed a comprehensive and methodical safety review process (PDF) that took 20 months to complete.

During that time, FAA employees worked diligently to identify and address the safety issues that played a role in the tragic loss of 346 lives aboard Lion Air Flight 610 and Ethiopian Airlines Flight 302."

The media reported that the aircraft is yet to get go-ahead from Directorate General of Civil Aviation (DGCA) to resume operations in India.

SpiceJet is reportedly the only Indian airline operating 737 Max planes in its fleet.

"Following the worldwide grounding during March 2019 of Boeing 737 MAX aircraft due to technical reasons, the company's fleet of thirteen Boeing 737 MAX aircraft continues to be grounded, Spicejet had said while announcing its September quarter results.

The low cost air carrier reported a consolidated net loss of Rs 105.61 crore in Q2 September 2020 as against net loss of Rs 461.22 crore in Q2 September 2019. On a consolidated basis, net sales tumbled 62.6% to Rs 1,031.66 crore in Q2 September 2020 over Q2 September 2019.

SpiceJet is a domestic low-budget air carrier which provides scheduled flights between major cities in India. It operates a fleet of Boeing and Q-400s that allow for greater efficiency in maintenance and to support its low-cost structure.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, November 19 2020. 13:34 IST