SpiceJet gets over Rs 900 crore funding, focus on cost-cutting measures
The latest installment came recently after its Chairman and Managing Director Ajay Singh infused funds into the airline.
Shares of budget carrier SpiceJet rose over 11 per cent on Thursday afternoon after the Federal Aviation Administration (FAA) of the US approved return of Boeing 737 MAX aircraft to commercial service.
The company’s shares on the BSE were trading at Rs 73.85, higher 11.30 per cent. It had earlier touched day’s high of Rs 76.80.
Following a similar trend, the scrip rallied 11.25 per cent on to Rs 73.70 on NSE.
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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 US FAA on Wednesday paved the way for the MAX aircraft to return to commercial service after a comprehensive and methodical safety review process that stretched for 20 months.
In the wake of two fatal crashes involving MAX planes, these aircraft were grounded worldwide in 2019. Joining many other regulators worldwide, the DGCA grounded MAX aircraft in March last year.
When asked about the next step after the FAA cleared the path for resumption of Boeing 737 MAX flights, a senior DGCA official told PTI that the regulator would “study and react. It will take some time.”
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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