The SpiceJet share price fell in early trade today after the government banned operation of Boeing 737 MAX 8 planes following the Ethiopian Airlines crash that killed 157 people. SpiceJet has 12 Boeing 737 MAX 8 aircraft in its fleet. SpiceJet share price fell 7.99% to 72.50 level compared to the previous close of 78.80 on BSE. SpiceJet share opened at a loss of 6.09% at 74 level and hit an intra day high of 76.40.
SpiceJet share price has fallen 45.01% during the last one year and 16.26% since the beginning of this year.
The stock has been falling for the last three days and lost 10.59% during the period.
SpiceJet share saw turnover of Rs 15.06 crore with 20.11 lakh shares changing hands on BSE.
Current Indian airlines that operate these aircraft are SpiceJet that has twelve of these planes in its fleet and Jet Airways that has five.
Jet Airways share price was trading 2.14% lower at 240.40 compared to previous close of 245.65 on BSE.
Jet Airways has already said it has five Boeing 737 MAX planes in its fleet "but is currently not flying any of these aircraft".
"DGCA has taken the decision to ground the Boeing 737-MAX planes immediately. These planes will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations," the Ministry of Civil Aviation said in a tweet.
DGCA has taken the decision to ground the Boeing 737-MAX planes immediately. These planes will be grounded till appropriate modifications and safety measures are undertaken to ensure their safe operations. (1/2)— Ministry of Civil Aviation (@MoCA_GoI) March 12, 2019
"As always, passenger safety remains our top priority. We continue to consult closely with regulators around the world, airlines, and aircraft manufacturers to ensure passenger safety," it added.
Civil Aviation Minister Suresh Prabhu said, "Directed Secy to hold an emergency meeting with all Airlines to prepare a contingency plan to avoid inconvenience to passengers. While passenger safety is a zero tolerance issue, efforts are already on to minimise the impact on passenger movement as their convenience is important (sic)."
On Sunday, a 737 MAX 8 aircraft operated by Ethiopian Airlines crashed near Addis Ababa killing 157 people, including four Indians. This was the second such major crash in less than five months involving a 737 MAX 8. An aircraft operated by Lion Air crashed in Indonesia killing over 180 people.
In response to this move, SpiceJet said, "We are actively engaged with both Boeing and the Directorate General of Civil Aviation and will continue to put safety first, as always. We have already implemented all additional precautionary measures as directed by the DGCA yesterday."
The statement further added, "The Boeing 737 Max is a highly sophisticated aircraft. It has flown hundreds of thousands of hours globally and some of the world's largest airlines are flying this aircraft."
Edited by Aseem Thapliyal