Boeing 737 Max Grounding: SpiceJet Considering Aircraft Maker’s Compensation Offer
Ajay Singh-led SpiceJet has been impacted by the grounding of its 13 Boeing 737 Max planes since March last year.
Indian budget airline SpiceJet Ltd. is considering the "interim offer of compensation" made by Boeing Co. for grounded 737 Max planes.
The no-frills carrier has been impacted by the grounding of its 13 Boeing 737 Max planes since March last year as it is incurring various costs related to the aircraft.
"Despite its inability to undertake revenue operations, the group continues to incur various costs with respect to these aircraft," SpiceJet Chairman Ajay Singh said in a note to the airline's financial statements for the nine months to December.
SpiceJet is the only domestic carrier that has Boeing 737 Max planes. These aircraft were grounded worldwide after two fatal accidents in late 2018 and early 2019.
According to Singh’s note, the airline is considering an interm offer of compensation made by Boeing. In relation to the 737 Max planes, certain costs—including aircraft and lease rentals—totaling Rs 537.27 crore have been recognised as other income in the nine months ended December.
The amount includes Rs 246.42 crore recorded in the quarter ended December.
Also Read: SpiceJet Eyes $10 Billion-Plus Airbus Deal Amid Boeing Woes
On Friday, SpiceJet shares rose 3.90 percent to Rs 88.00 apiece on the NSE while the benchmark Nifty 50 fell 0.50 percent to 12,113.45 points.