SpiceJet shares surge 13% as US regulator clears Boeing 737 Max

Updated: Nov 19,2020 06:30 GMT

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IANS

Tags: Business
Mumbai, Nov 19 (IANS) Shares of budget airline SpiceJet rose over 13 per cent on Thursday after the Federal Aviation Administration (FAA) of the US cleared Boeing's 737 Max aircraft to resume flying, nearly two years after it was banned post two fatal crashes.

The stock price surged 13.6 per cent on the BSE to hit an intra-day high of Rs 75.40 per share.

Around 11 a.m., its shares were trading at Rs 74.35, higher by Rs 8 or 12.06 per cent from its previous close.

SpiceJet is the only India airline with the aircraft, apart from the now-grounded Jet Airways, and has 13 Boeing 737 Max in its fleet.

The company it its July-September earnings had said that despite its inability to undertake revenue operations, the company continues to incur various costs with respect to these aircrafts.

On Wednesday, FAA said in a statement: "The design and certification of this aircraft included an unprecedented level of collaborative and independent reviews by aviation authorities around the world," the FAA said in a statement.

The American regulator said that globally, regulators have indicated that Boeing's design changes, together with the changes to crew procedures and training enhancements, will give them the confidence to validate the aircraft as safe to fly in their respective countries and regions.

In a statement, Boeing said the move will allow the airlines that are under the FAA's jurisdiction, including those in the US, to take the steps necessary to resume service and begin making deliveries.

The clearance in the US raises hopes of similar moves in other countries including India.

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