SpiceJet shares gain over 15% after FAA Boeing’s 737 Max clearance — DGCA says will take some time before making a decision

SpiceJet shares gain over 15% after FAA Boeing’s 737 Max clearance — DGCA says will take some time before making a decision
SpiceJet
  • The Federal Aviation Administration (FAA) of the US cleared Boeing’s 737 Max aircraft to resume flying, nearly two years after it was banned post two fatal crashes.
  • SpiceJet has a fleet of 13 Boeing’s 737 Max planes that were grounded in March 2019.
  • The Indian aviation watchdog in India, DGCA, said it would study the FAA’s decision and take “some time” before taking a final call on allowing Boeing 737 MAX planes to fly again in the Indian skies.
The shares of budget carrier SpiceJet soared over 15% on Thursday after the Federal Aviation Administration (FAA) of the US cleared Boeing’s 737 Max aircraft to resume flying, nearly two years after it was banned post two fatal crashes.

SpiceJet shares gain over 15% after FAA Boeing’s 737 Max clearance — DGCA says will take some time before making a decision

SpiceJet’s investors cheered the FAA decision as the airline is the only one in the Indian skies with a Boeing fleet, other than the now-shuttered Jet Airways. SpiceJet has a fleet of 13 such planes that were grounded in March 2019. In its July-September earnings, the company had said that it continues to incur various costs concerning these grounded aircraft despite its inability to undertake revenue operations.

The American regulator said that globally, regulators have indicated that Boeing’s design changes, together with the changes to crew procedures and training enhancements, will give them the confidence to validate the aircraft as safe to fly in their respective countries and regions.
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“The design and certification of this aircraft included an unprecedented level of collaborative and independent reviews by aviation authorities around the world,” the FAA said in a statement.

In a separate statement, Boeing said the move would 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.

DGCA is not convinced yet

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The clearance in the US raises hopes of similar moves in other countries, including India. However, the Indian aviation watchdog in India, DGCA, said it would study the FAA’s decision and take “some time” before taking a final call on allowing Boeing 737 MAX planes to fly again in the Indian skies.

The FAA also said these actions do not allow the MAX to return immediately to the skies. It will also approve 737 MAX pilot training program revisions for each US airline operating the MAX aircraft and will retain its authority to issue airworthiness certificates.

“Following the return to service, the FAA will continue to work closely with our foreign civil aviation partners to evaluate any potential additional enhancements for the aircraft,” FAA noted.

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What led to Boeing 737 MAX grounding?

In the wake of two fatal crashes involving MAX planes, these aircraft were grounded worldwide. In March 2019, a MAX plane operated by Ethiopian Airlines crashed near Addis Ababa, killing 157 people, including four Indians. In October 2018, a Lion Air-operated 737 Max crashed, leaving 180 people dead in Indonesia. Joining many other regulators worldwide, the Directorate General of Civil Aviation (DGCA) grounded MAX aircraft in March last year.

(with inputs from wire services)

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