SpiceJet Shares Spike As 737 Max gets Clearance in US

Shares of budget airline SpiceJet rose over 13 per cent on Thursday after the Federal Aviation Administration (FAA) of the US cleared Boeing’s 737 Max aircraft to resume flying, nearly two years after it was banned post two fatal crashes.

The stock price surged 13.6 per cent on the BSE to hit an intra-day high of Rs 75.40 per share.

Around 11 a.m., its shares were trading at Rs 74.35, higher by Rs 8 or 12.06 per cent from its previous close.

SpiceJet is the only India airline with the aircraft, apart from the now-grounded Jet Airways, and has 13 Boeing 737 Max in its fleet.

The company it its July-September earnings had said that despite its inability to undertake revenue operations, the company continues to incur various costs with respect to these aircrafts.

On Wednesday, FAA said in a statement: “The design and certification of this aircraft included an unprecedented level of collaborative and independent reviews by aviation authorities around the world,” the FAA said in a statement.

The American regulator said that globally, regulators have indicated that Boeing’s design changes, together with the changes to crew procedures and training enhancements, will give them the confidence to validate the aircraft as safe to fly in their respective countries and regions.

In a statement, Boeing said the move will allow the airlines that are under the FAA’s jurisdiction, including those in the US, to take the steps necessary to resume service and begin making deliveries.

“We will never forget the lives lost in the two tragic accidents that led to the decision to suspend operations,” David Calhoun, Chief Executive Officer of The Boeing Company, said in a statement.

“These events and the lessons we have learnt have reshaped our company and further focused our attention on our core values of safety, quality and integrity,” it added.

The statement noted that throughout the past 20 months, Boeing had worked closely with the airlines, providing them with detailed recommendations regarding long-term storage and ensuring that their inputs were part of the effort to safely return the airplanes to service.

“The FAA’s directive is an important milestone. We will continue to work with regulators around the world and our customers to return the airplane back into service worldwide,” said Stan Deal, President and CEO of Boeing Commercial Airplanes.

Also Read: Pandemic, 737 Max Lead SpiceJet to Loss

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