SpiceJet Surges After US Aviation Regulator Lifts Ban On Boeing 737 MAX Planes
Shares of budget airline operator - SpiceJet - rose as much as 15.74 per cent to hit an intraday high of Rs 76.80 after the US aviation regulator lifted a 20-month-old flight ban on Boeing Co's 737 MAX on Wednesday, easing a safety crisis that left its top exporter with a tarnished reputation and hundreds of idle jets. SpiceJet operates a fleet of eight Boeing 737 MAX planes. "SpiceJet has recently added to its fleet the B737- MAX 8 aircraft, which are newly designed, state-of-art aircraft with the new fuel efficient engines (CFM LEAP 1B)," SpiceJet said on its website.
US Federal Aviation Administration chief Steve Dickson signed an order lifting the longest jet grounding in commercial aviation history, and the agency released final details of the software, system and training upgrades Boeing and airlines must complete before carrying passengers.
The 737 MAX crashes in Indonesia and Ethiopia killed 346 people within five months in 2018 and 2019 and triggered a hailstorm of investigations, frayed US leadership in global aviation and cost Boeing some $20 billion.
Meanwhile, reports suggest that the government's aviation regulator will study the US aviation regulator's order.
The 737 MAX is a re-engined upgrade of a jet introduced in the 1960s. Single-aisle jets such as the MAX and rival Airbus A320neo are workhorses that dominate global fleets and provide a major source of industry profit.
As of 1:22 pm, SpiceJet was up 13.94 per cent at Rs 75.60, outperforming the Sensex which was down 0.15 per cent.
(With inputs from Reuters)
