SpiceJet share rises over 4% after ban on Boeing 737 Max aircraft lifted

SpiceJet share rose over 4% in early trade in an otherwise flat market after the only carrier with B737 Max in India - entered into a settlement with Avolon, a major lessor of MAX aircraft, for restarting flights around the end of September 2021.

The development comes after aviation regulator DGCA lifted the ban on Boeing 737 Max planes' commercial flight operations after almost two-and-half years.

SpiceJet share rose 4.3% to Rs 74.15 against previous close of Rs 71.05 on BSE. Market cap of the firm stood at Rs 4,366 crore on BSE.

Total 1.75 lakh shares changed hands amounting to turnover of Rs 1.29 crore.

The small cap stock opened with a gain of 2.67% at Rs 72.95.

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The airline share trades higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages. The stock has gained 40% in a year but fallen 23.38% since the beginning of this year.

On March 13, 2019, all Boeing 737 Max planes were grounded in India by the Directorate General of Civil Aviation (DGCA) after the crash of an Ethiopian Airlines 737 Max plane on March 10 near Addis Ababa which had left 157 people, including four Indians, dead.

Aircraft manufacturer Boeing has been modifying the 737 Max plane since March 2019 so that various countries' regulators, including the DGCA, permit its passenger flight operations again.