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Home / Business / Boeing to pay SpiceJet for grounding of Max

Boeing to pay SpiceJet for grounding of Max

SpiceJet’s fleet of 13 Max aircraft was grounded in March 2019 following back-to-back crashes that claimed 346 lives
Representational image.

Our Special Correspondent   |   New Delhi   |   Published 18.11.21, 02:05 AM

Budget carrier SpiceJet on Wednesday said Boeing has agreed to settle outstanding claims related to the grounding of 737 Max aircraft. The airline did not specify how much it will receive from Boeing as compensation.

SpiceJet’s fleet of 13 Max aircraft was grounded in March 2019 following back-to-back crashes that claimed 346 lives. The airline had raised claims with Boeing regarding “cost and losses”.

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“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 said.

The settlement paves the way for the induction of efficient and younger Max aircraft into SpiceJet’s fleet and ensures the resumption of new deliveries from an existing order of 155 Max aircraft, the Indian carrier said.

Civil aviation regulator DGCA in August had lifted the ban on 737 Max aircraft commercial flight operations after almost two-and-half years.

SpiceJet had reported a net loss of Rs 934.8 crore in 2019-20 and Rs 998.3 crore in 2020-21. It has reported a net loss of Rs 1,291 crore in the first two quarters of the current financial year. 

Akasa Air

Rakesh Jhunjhunwala-backed new airline Akasa Air on Wednesday said it has signed an agreement to purchase CFM LEAP-1B engines to power its Boeing 737 MAX airplanes and the overall deal is estimated to be worth $4.5 billion.

Akasa Air had on Tuesday ordered 72 737 Max aircraft from Boeing to launch its service in India.

The pact was signed with CFM at the ongoing Dubai Airshow.

The deal includes spare engines and long-term service agreement.

“We are pleased to partner CFM International as we embark on an exciting journey to launch the greenest, most affordable and most dependable airline in India,” Akasa Air CEO Vinay Dube said.

Our partnership with CFM will ensure that we adhere to the world's highest standards of maintenance and deliver the industry's best technical dispatch reliability," Akasa Air CEO Vinay Dube said.

Akasa Air, owned by SNV Aviation, is expected to start flying next summer. It has already received a no-objection certificate from the civil aviation ministry.



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