Spicejet share price surged over 4 percent in early trade on August 27 after DGCA lifted the ban on Boeing 737 MAX aircraft.
The Directorate General of Civil Aviation (DGCA) has lifted the ban on Boeing 737 MAX aircraft, over two years after it was grounded, as per a statement issued by the aviation sector regulator on August 26.
The rescission of ban “enables operation of Boeing company model 737-8 and Boeing company model 737-9 airplanes only upon satisfaction of applicable requirements for return to service”, the DGCA order stated.
SpiceJet has 13 Boeing Max aircraft in its fleet.
The DGCA, in its order which revokes the ban imposed in March 2019, cited the clearance granted to Boeing 737 MAX aircraft by the regulators in the United States and Europe.
“Based on design changes by M/s Boeing, Federal Aviation Administration (FAA) issued an Airworthiness Directive (AD) on November 18, 2020, mandating actions for 737 Max airplanes return to service (RTS),” it said, referring to the resumption of the aircraft’s use by American carriers since December last year.
“Subsequently, European Aviation Safety Agency (EASA) also issued its own AD on February 17, 2021 which has been mandated by DGCA for compliance on Indian registered fleet,” it added.
The order further added that worldwide 17 regulators have permitted operation of Boeing 737 Max airplane.The company on August 13, posted a consolidated net loss of Rs 731.12 crore for Q1FY22 against a loss of Rs 600.52 crore in the same quarter last year.Total revenue from operations more than doubled to Rs 1,125 crore for the quarter under review against Rs 521 crore in Q1FY21.The company reported EBIDTAR loss of Rs 104 crore.
At 09:17 hrs SpiceJet was quoting at Rs 73.15, up Rs 2.10, or 2.96 percent on the BSE.The share touched a 52-week high of Rs 107.95 and a 52-week low of Rs 45.60 on 14 December, 2020 and 25 September, 2020, respectively.
Currently, it is trading 32.24 percent below its 52-week high and 60.42 percent above its 52-week low.
Information Source: money control and Spicejet.
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