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Sun, Aug 29, 2021

Holdout SpiceJet Intends To Restart Boeing MAX Service By September

Controversial MAX Set To Return To India’s Skies

India's SpiceJet said this week it expects the Boeing 737 MAX jets in its fleet to return to service by the end of September following a settlement struck with lessor Avolon. Directorate General of Civil Aviation, the country's air safety regulator, cleared 737 MAX to fly after two and a half years of grounding.

No further details on the settlement have been provided. The 737 MAX was grounded worldwide in March 2019 after two fatal crashes in five months killed 346 people. Around 175 countries have allowed the 737 MAX to return to service, with 30 airlines already restarting their MAX aircraft services. SpiceJet is India’s second largest airline and the only one in the country to fly the MAX.

Between the uptick in vaccinations and easing of travel restrictions, Likhita Chepa, senior research analyst at CapitalVia Global Research, theorizes that the MAX can help SpiceJet get back on track for financial success.

"However, higher ATF prices might hurt margins and operability," Chepa added.

Ajay Singh, Chairman and Managing Director, SpiceJet, said, “I am delighted to share that our 737 MAXs will be back in the air soon. As India emerges from Covid and air traffic picks up again, the MAX aircraft will play a major role in our future expansion. With a better and a more efficient fleet back in operation we expect a significant reduction in our operating costs improving our bottom line."

SpiceJet has mentioned that with 13 of it’s 737 MAX planes being grounded, there have been talks with Boeing looking towards compensation at the losses due to this situation.

FMI: www.beta.spicejet.com

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