India allows Boeing MAX to fly 30 mths after global ban

Spicejet plans to bring the aircraft back in service by Sep-end

Aviation regulator Directorate General of Civil Aviation (DGCA) on Thursday lifted a ban on Boeing 737 MAX aircraft, two and a half years after it was grounded globally. The ban had followed two crashes killing 346 on-board.

India, besides China, was the only major aviation market for the Chicagoheadquartered Boeing not to allow the aircraft to resume service so far. While the Federal Aviation Administration in the US allowed 737 MAX to fly again last November, China has conducted test flights and is likely to approve soon.

“Worldwide 17 operators have permitted operation of 737 MAX aircraft. 34 airlines have been operating 345 aircraft with 2,89,537 hours of flying with no untoward reporting. For the foregoing reasons, the ban on 737 MAX aircraft is rescinded,” DGCA head Arun Kumar wrote in a circular.

Indian low-cost carrier Spicejet has one of the largest order book of the aircraft with 13 delivered and 142 in waiting. The airline said it would reintroduce the aircraft by the end of September. Rakesh Jhunjhunwala-backed airline Akasa is also in talks with Boeing for buying up to 100 737 MAX aircraft.

An aircraft technician with experience of working on the 737 MAX aircraft said around 15 days of work would be required on each aircraft to make them fit to return to the skies. “The work will include installing new hardware and software changes for the flight-control systems, operation checks, multiple inspection checks and then a test flight before the regulator declares the aircraft airworthy,” he explained.

Changes to the flight control system have been mandated by the FAA as accident investigators said that an automated flight-control system, called MCAS, was responsible for the fatal crashes. “This software update will take around two to four hours for each aircraft.

Around 200 hours of maintenance work will also have to be done on each aircraft including de-preservation of the aircraft. “Since the aircraft were in long-term storage, they will have to be brought out of preservation. In addition, there would be pilot training and updating of the engineering manuals,” he said.

Boeing’s projection suggests airlines in India will need more than 2,200 new jets worth almost $320 billion over the next 20 years.

In a statement released to the stock exchange, Spicejet said it had entered into a settlement with Dublin-based Avolon- a major lessor of the 737 MAX aircraft.

“I am delighted to share that our 737 MAX will be back in the air soon. The MAX aircraft will play a major role in our future expansion. With a better and a more efficient fleet back in operation, we expect a significant reduction in our operating costs improving our bottom line,” Spicejet CMD Ajay Singh said. Spicejet said it suffered loss of business due to the grounding and had sought compensation from Boeing. Over the last eight quarters since 737 MAX was grounded, the airline has booked other income of around Rs 1,400 crore as compensation. However, auditors have maintained there’s “no virtual certainty” that the compensation would materialise.

Spicejet has realised and received Rs 275 crore from Boeing as on date and with the on-going negotiations, the balance compensation is expected to be received in the near to medium term, according to sources in the know. The airline may also agree to waive off the same if Boeing in return restructures the lease rentals with longer tenure.