SpiceJet shares rally nearly 14% after US FAA move

SpiceJet shares rally nearly 14% after US FAA move

NEW DELHI: Shares of SpiceJet jumped nearly 14 per cent during morning trade on Thursday after the Federal Aviation Administration (FAA) of the US approved return of Boeing 737 MAX aircraft to commercial service.
Directorate General of Civil Aviation (DGCA) on Wednesday said it will study 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.
On BSE, the shares were trading at Rs 75.4, higher 13.63 per cent.
Following similar trend, the scrip rallied 13.96 per cent on to Rs 75.5 on NSE.
The US FAA on Wednesday paved the way for the MAX aircraft to return to commercial service after a comprehensive and methodical safety review process that stretched for 20 months.
In the wake of two fatal crashes involving MAX planes, these aircraft were grounded worldwide in 2019. Joining many other regulators worldwide, the DGCA grounded MAX aircraft in March last year.
When asked about the next step after the FAA cleared the path for resumption of Boeing 737 MAX flights, a senior DGCA official told PTI that the regulator would “study and react. It will take some time.”
Only two Indian carriers — SpiceJet and now-shuttered Jet Airways — were operating MAX aircraft before they were grounded on safety concerns. SpiceJet has a fleet of 13 such planes that were grounded in March 2019.

Source From : Times Of India

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