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SpiceJet, Boeing settle 737 Max aircraft claims; plane to return to service

SpiceJet, Boeing settle 737 Max aircraft claims; plane to return to service

The settlement would pave the way for the induction of efficient and younger MAX aircraft into SpiceJet's fleet and ensures the resumption of new aircraft deliveries from its order of 155 MAX aircraft.

SpiceJet is Boeing's biggest customer for the MAX planes in India. SpiceJet is Boeing's biggest customer for the MAX planes in India.

Budget carrier SpiceJet said on Wednesday that it has entered into a settlement agreement with US planemaker Boeing wherein the latter has agreed to settle the outstanding claims pertaining to the grounding of its 737 Max aircraft and its return to service.

According to the airline's press statement, this settlement would pave the way for the induction of efficient and younger MAX aircraft into SpiceJet's fleet and ensure the resumption of new aircraft deliveries from its order of 155 MAX aircraft.

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"The Company is pleased to announce that it has entered into a settlement agreement with Boeing wherein Boeing has agreed to provide certain accommodations and settle the outstanding claims related to the grounding of 737 MAX aircraft and its return to service," SpiceJet said in a regulatory filing.

SpiceJet is Boeing's biggest customer for the MAX planes in India.

The airline, recently, also announced that it has finalised the terms of the settlement with CDB Aviation and Avolon, two of its major lessors of 737 Max aircraft.

The settlements, as well as operations of 737 Max aircraft, will lead to substantial savings for SpiceJet. Meanwhile, the airline expects to begin flying its MAX aircraft soon once it secures all regulatory approvals.

Also Read: SpiceJet cuts down Q2 net loss to Rs 561.7 cr; revenue grows to Rs 1,539 cr

SpiceJet reported a net loss of Rs 562 crore for the quarter ended September (Q2 FY22), as compared to a net loss of Rs 11.5 crore in the year-ago quarter on account of a steep spike in operating costs in the quarter guided mainly by fuel expenses.

The airline's sales, however, jumped 27% on-year to Rs 1,342.5 crore helped by the reopening of the economy in the wake of falling COVID cases and a higher vaccination rate.