SpiceJet finalises settlement with major lessor of MAX aircraft

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.

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