SpiceJet finalises settlement with major lessor of MAX aircraft
SpiceJet has entered a settlement with Avolon, a major lessor of MAX aircraft, paving the way for its 737 MAX aircraft to start to return to service. The airline expects to start MAX aircraft operations around the end of September 2021 subject to regulatory approvals.
SpiceJet shares recovered initial losses to enter positive territory in late morning deals. The stock rose as much as 3.35% to Rs 74 apiece on BSE.
The development should provide a breather to pandemic struck airline services provider.
The aviation industry has been in pain since the beginning of the covid-19 pandemic, as traffic took a sharp beating and understandably so.
The second covid wave stalled the recovery that was in progress after lockdown restrictions were eased last year. This meant average daily passengers declined to a low in May and, since then, traffic is gradually improving.
Recently, Spicejet decided to transfer its logistics business to its subsidiary SpiceXpress and Logistics. This is on a slump sale basis, along with all related assets and liabilities, including knowhow, trademark, licenses, franchises, customer contracts, distribution network etc.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.