SpiceJet share price moves up by 4% as DGCA lifts ban on Boeing 737 MAX aircraft

On August 27, SpiceJet’s share price surged over 4 per cent in early trade after DGCA lifted the ban on Boeing 737 MAX aircraft.

The Directorate General of Civil Aviation (DGCA) has lifted the ban on Boeing 737 MAX aircraft, over two years after it was grounded, as per a statement issued by the aviation sector regulator on August 26. A senior DGCA official confirmed that the ban on 737 Max planes’ commercial flight operations has been lifted.

The rescission of the ban “enables operation of Boeing company model 737-8 and Boeing company model 737-9 aeroplanes only upon satisfaction of applicable requirements for return to service”, the DGCA order stated.

SpiceJet has 13 Boeing Max aircraft in its fleet. The DGCA, in its order which revokes the ban imposed in March 2019, cited the clearance granted to Boeing 737 MAX aircraft by the regulators in the United States and Europe. Currently, only SpiceJet airline in India has Boeing 737 Max aircraft in its fleet. No other airline in India uses the Max plane.

On March 13, 2019, SpiceJet had to ground 12 Max planes, forcing it to cancel a significant number of flights on that day as well as on the next day. Jet Airways also had five Max planes in its fleet but they were already grounded as of March 13, 2019 due to non-payment of dues to the lessors. A month later, the full-service carrier had shut down its operations due to a lack of funds.

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