SpiceJet opened at 8% higher, this development comes after the US FAA lifted the ban on Boeing 737 Max flights. DGCA is currently studying the FAA order on lifting the ban.
On Wednesday, US aviation safety regulator, US FAA, has cleared Boeing’s 737 Max plane to fly again. After two crashes of Boeing flights US FAA put the grounding orders on flights in March 2019, which is now been removed.
The regulators informed, “The clearance would not allow the plane to return immediately to the skies as the existing aircraft will need to be modified before going back into service, with changes to their design.” On Wednesday, the FAA said, “Alongside the software and wiring changes, pilots will also need training. Besides, the approved changes have eliminated what caused these particular accidents.”
“Once 737 Max returns to operations, SpiceJet could start receiving incentives as part of the sales and leaseback agreement. Although it is difficult to speculate, its recent deal to lease two A330 gives us some confidence. Boeing might also provide support as SpiceJet’s survival is crucial for Boeing to have a continued presence in India,” it said in the report.
SpiceJet is an Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second-largest airline in the country by the number of domestic passengers carried, with a market share of 13.6% as of March 2019. The airline operates 630 daily flights to 64 destinations, including 54 Indian and 15 international destinations from its hubs at Delhi and Hyderabad