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SpiceJet zooms over 9% on inducting new aircraft to its fleet

Shares of SpiceJet surged over 9 per cent intraday on Friday as the budget Indian airline announced the induction of 16 Boeing 737-800 NG aircraft over the next 10 days.

twitter-logo BusinessToday.In        Last Updated: April 12, 2019  | 15:54 IST
SpiceJet zooms over 9% on inducting new aircraft to its fleet
Spicejet stock closed at Rs 110, up 9 per cent on BSE today.

Shares of SpiceJet surged over 9 per cent intraday on Friday as the budget Indian airline announced the induction of 16 Boeing 737-800 NG aircraft over the next 10 days.

The stock has gained 14 per cent in the last 2 consecutive trading sessions. SpiceJet has formed a gap up chart pattern today.

After opening with a gain of 2.7 per cent, the stock rose almost 10 percent to the day's high at Rs 110.80 against the previous close of Rs 101.25.

The stock closed at Rs 110, up 9 per cent on BSE today.

The stock has delivered positive returns of 37 per cent in three months, 39 per cent in one month and over 13 per cent in the last week, respectively.

As per the BSE, there has been a spurt in the volumes (45.4 lakh shares on BSE) by more than 4.45 times.

SpiceJet Ltd. notified the exchanges on Friday morning that it plans to lease a first lot of 16 Boeing Co 737-800s which will further help to fill the gap in its aviation capacity as the rating agency ICRA said it has pushed up fares by 30 to 40 per cent since September.

As per the press release, SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a no objection certificate (NOC) to import the aircraft, and after further regulatory approvals, the aircraft will join the fleet within ten days.

Ajay Singh, Chairman and Managing Director, SpiceJet quoted, "This is the first lot of Boeing 737s that we are inducting in our fleet. The sudden reduction of aviation capacity has created a challenging environment in the sector. SpiceJet is committed to working closely with the government authorities to augment capacity and minimize passenger inconvenience."

The airline added that such new inductions will not just bring down flight cancellations to nil but also help in SpiceJet's aggressive international and domestic expansion plans.

SpiceJet had cancelled some flights due to the grounding of its 12 737 MAX planes after Ethiopian Airlines' deadly March 10 crash.

"The sudden reduction of aviation capacity has created a challenging environment in the sector. SpiceJet is committed to working closely with the government authorities to augment capacity and minimise passenger inconvenience," SpiceJet Chairman Ajay Singh said in a statement.

SpiceJet operates 516 average daily flights to 60 destinations, including 51 domestic and 9 international ones. The airline has a fleet of 50 Boeing 737, 27 Bombardier Q-400s and one B737 freighter as of now.

Also Read: SpiceJet to lease 16 Boeing 737s to fill gap as groundings push up fares

Also Read: Share Market Update: Sensex ends 160 points higher, Nifty closes below 11,650; PC Jwellers, Gail, Asian paints top gainers

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