SpiceJet & Boeing settle claims related to grounding of 737 Max
The move paves the way for induction of younger Max aircraft into SpiceJet’s fleet
NEW DELHI: SpiceJet on Wednesday said it has entered into an agreement with the US-based aerospace company Boeing to settle outstanding claims related to the grounding of 737 Max aircraft and its return to service.
SpiceJet’s fleet of 13 Max aircraft has not operated any commercial flight since March 2019 when the plane was grounded worldwide. The airline had subsequently raised claims with Boeing regarding “cost and losses”. “SpiceJet is pleased to announce that it has entered into a settlement agreement with Boeing wherein 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,” the airline’s statement said.
This paves the way for the induction of efficient and younger Max aircraft into SpiceJet’s fleet and ensures the resumption of new aircraft deliveries from our order of 155 Max aircraft, it added.
The airline did not specify how much amount it has received from Boeing as compensation.
India’s aviation regulator DGCA had on August 26 lifted the ban on 737 Max aircraft’s commercial flight operations after almost two-and-half years.
All 737 Max planes were grounded in India by the Directorate General of Civil Aviation (DGCA) on March 13, 2019, three days after the crash of an Ethiopian Airlines 737 Max plane near Addis Ababa, which had left 157 people, including four Indians, dead.
SpiceJet had reported a net loss of ₹934.8 crore and ₹998.3 crore in 2019-20 and 2020-21, respectively. It has reported a net loss of ₹1,291 crore in the first two quarters of the current financial year. Rakesh Jhunjhunwala-backed new airline Akasa Air on Tuesday ordered 72 737 Max aircraft from Boeing to launch service in India.
On March 13, 2019, all Boeing 737 Max planes were grounded in India by the DGCA after the crash of an Ethiopian Airlines 737 Max plane on March 10, near Addis Ababa which had left 157 people, including four Indians, dead. Then, in India, only SpiceJet airline had Boeing 737 Max aircraft in its fleet.
However, in April this year, the DGCA allowed the grounded aircraft to resume flying over the Indian airspace and also allowed foreign-registered aircraft to be ferried out of the country to conduct operational readiness flights. It, however, did not allow Indian aircraft grounded in the country to fly at that time.
The DGCA had said in its order that it lifted the ban after reviewing the approvals of the FAA and the EASA and on lines of 17 other regulators across the world who have also allowed flight of Boeing 737 Max aircraft.
“A sizeable number of airlines (34) with B737 Max airplane (345) are operating currently and have attained 122,824 total departures with 289,537 cumulative hours since the un-grounding from December 9, 2020, with no untoward reporting, “said the order issued by the DGCA.
SpiceJet has decreased its domestic flight services by at least 31% to 2,995 weekly domestic flights in the winter schedule this year as compared to 4,316 weekly flights that it got approved for the winter schedule in 2019, the aviation regulator DGCA said.