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Budget airline SpiceJet said on Wednesday US planemaker Boeing had agreed to settle the outstanding claims related to the grounding of its 737 MAX aircraft.
The announcement from the country’s second-largest airline comes a day after billionaire investor Rakesh Jhunjhunwala-backed Akasa Air placed an order for 72 Boeing 737 MAX jets valued at nearly $9 billion at list prices.
Also see: SpiceJet employees strike over salary issue
“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 filing to the domestic stock exchanges.
Settlement
The settlement will allow the resumption of new aircraft deliveries from SpiceJet’s order of 155 MAX aircraft, the airline said, adding that it will also pave the way for inducing “efficient and younger MAX aircraft” into its fleet.
SpiceJet is Boeing’s biggest customer in the South Asian nation for the MAX planes.
Fatal crashes
The Directorate General of Civil Aviation had decided to ground the 737 Max aircraft over two-and-half years ago after two fatal crashes in 2019. In August this year, the aviation regulatory body had given the company the clearance to fly these aircraft after Boeing passed multiple tests.
While there is no clarity on the amount, SpiceJet has been taking possible compensation from Boeing as its “other income” for several quarters.
Sales jump 27 per cent
SpiceJet reported a net loss of ₹562 crore for the quarter ended September (Q2FY22), as compared to a net loss of ₹11.5 crore in the same quarter a year ago on account of a steep spike in operating costs guided mainly by fuel expenses.
Also see: Boeing set to dent Airbus India dominance with 737 Max order
The airline’s sales, however, jumped 27 per cent year-on-year to ₹1,342.5 crore helped by the reopening of the economy in the wake of falling Covid cases and a higher vaccination rate.
SpiceJet shares were trading down 2.1 per cent as of 0355 GMT in a weak Mumbai market.
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