08:43 GMT +310 December 2019
Listen Live
    FILE PHOTO: An aerial photo shows Boeing 737 MAX aircraft at Boeing facilities at the Grant County International Airport in Moses Lake, Washington, September 16, 2019

    Indian Carrier SpiceJet Posts Huge Loss in Q2, Blames Boeing 737 MAX for Adding to Costs

    © REUTERS / Lindsey Wasson
    Business
    Get short URL
    203
    Subscribe

    New Delhi (Sputnik): Spicejet blames the grounding of Boeing 737 MAX for adding to costs and incurring losses, while expressing hope that the aircraft may return to service early next year.

    Indian private carrier Spicejet on Wednesday posted a loss of $66 million in the second quarter of the current financial year against $55 million in the same quarter of the previous year. Spicejet has blamed the grounding of Boeing 737 MAX for adding to costs and incurring losses.

    Spicejet is in the process of determining the costs and losses it has incurred, and has initiated the process of seeking reimbursements and claims from the aircraft manufacturer.

    Ajay Singh, SpiceJet's Chairman and Managing Director, said “The continued grounding of the 737 MAX has hit our growth plans adversely and resulted in inefficient operations and as a result, increase in costs. The likely return to service of the 737 MAX early next year, as indicated by Boeing recently, would mean that SpiceJet has at its disposal more than 25 brand new planes and we look forward to it.”

    “The return of the 737 MAX will provide a huge boost to our operations and we are confident that with the rigorous scrutiny, the MAX will be one of the safest airplanes ever to fly,” Singh said.

    Boeing plans to have the 737 MAX back in operation from January 2020. The delivery is likely to resume from December this year. The 737 MAX was grounded in March 2019 after two separate crashes led to 346 deaths.

    In October 2018, Lion Air Flight crashed immediately after taking off from Jakarta, killing 189 people. In March this year, in yet another crash involving the Max, 157 passengers on board an Ethiopian Airlines flight died. In response, all Max flights were grounded globally.

    Related:

    Ryanair Grounds Three Boeing 737s Due to Cracks Between Wings and Fuselage
    India Set to Be World's Fastest Growing Aviation Market Over Next 20 Years - Boeing
    Boeing Expects Beleaguered 737 Max to Resume Commercial Flights in January
    Tags:
    Aviation, Boeing 777, Boeing, Boeing 737, SpiceJet, India
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik