SpiceJet signs settlement deal with Boeing

SpiceJet has announced that it has reached a deal with Boeing.

Spicejet has announced that it has reached an agreement with Boeing under which Boeing has agreed to offer certain accommodations and pay all outstanding claims relating to the 737 MAX aircraft’s grounding and restoration to service.

According to a press release from Spicejet, the settlement agreement would open the way for the entry of more efficient and younger MAX aircraft into the company’s fleet, as well as the resumed delivery of new MAX aircraft from an order of 155 MAX aircraft.

Avolon and CDB Aviation, two of the business’s largest lessors of 737 MAX aircraft, recently stated that they had finalized terms of settlements with the company. The settlements and operations of 737 MAX aircraft would save the airline a lot of money. Once all regulatory clearances have been acquired, the airline plans to begin flying its MAX aircraft soon. In the second quarter of FY22, the low-cost airliner reported a net loss of Rs 570.56 crore, up from Rs 105.61 crore in the second quarter of FY21. From Rs 1,031.66 crore in Q2 FY21 to Rs 1,304.52 crore in Q2 FY22, net sales climbed by 26.4 percent to Rs 1,304.52 crore.

After nearly two-and-a-half years, India’s aviation authority, the Directorate General of Civil Aviation (DGCA), lifted the ban on Boeing 737 Max planes flying commercially on August 26. After the disaster of an Ethiopian Airlines 737 Max airliner near Addis Ababa on March 10 that killed 157 people, including four Indians, the DGCA grounded all Boeing 737 Max flights in India on March 13, 2019.

Since the jet was ungrounded late last year, 34 airlines have performed 1.22 lakh flights using 345 Max planes without “untoward reporting,” according to India’s aviation regulator. As a result, the DGCA declared that Boeing 737 Max jets are permitted to fly in India “only upon satisfaction of necessary prerequisites for return to service.”

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