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India’s SpiceJet, Boeing settle 737 MAX-related claims -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO A SpiceJet passenger Boeing 737-880 aircraft departs from Ahmedabad’s Sardar Vallabhbhai Ptel International Airport in Ahmedabad on May 19, 2016. REUTERS/Amit Dave/File Photo

BENGALURU (Reuters), – Indian budget airline SpiceJet stated Wednesday that U.S. aircraft manufacturer Boeing (NYSE:), had accepted to settle all claims relating the grounded 737 MAX plane.

This announcement by the nation’s second largest airline is coming just days after Akasa Air, backed by billionaire Rakesh Jhunwala, placed an order to purchase 72 Boeing 737 MAX aircraft valued at almost $9 billion.

SpiceJet stated in a filing sent to domestic stock exchanges that Boeing had agreed to make certain arrangements and resolve any outstanding claims relating to the grounded 737 MAX aircraft.

According to SpiceJet, this settlement will enable SpiceJet to resume new aircraft delivery from its order of 155 MAX planes. It will also allow SpiceJet to introduce “efficient and younger MAX airplanes” into its fleet.

SpiceJet, the largest South Asian customer for Boeing’s MAX aircrafts is Boeing.

India’s aviation safety regulator cleared the 737 MAX plane to fly in August after a nearly two-and-a half-year-long regulatory grounding. This was following two fatal accidents in India in 2019.

SpiceJet shares fell 2.1% in the weak Mumbai market at 0355 GMT

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