Boeing assures SpiceJet that it will pay up for MAX aeroplane blow

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Published: October 3, 2019 1:55:31 PM

Boeing has assured Indian domestic carrier SpiceJet, along with the rest of the world’s airlines, that it will pay up for their losses from service disruptions due to MAX aircraft groundings.

SPICEJETAs the only Indian buyer of Boeing MAX aircraft, SpiceJet hopes for MAX’s return even when the company is also eyeing a deal with Boeing’s chief rival Airbus.

Boeing has assured Indian domestic carrier SpiceJet, along with the rest of the world’s airlines, that it will pay up for their losses from service disruptions due to MAX aircraft groundings. While Boeing, one of the world’s biggest aeroplane manufacturers, has said that MAX aircraft will be fit to fly by November, SpiceJet expects that it will return only by early next year in January after securing DGCA and other regulators’ nod, Ajay Singh, chairman and managing director, SpiceJet, told CNBC TV18 in an interview. The airline also expects compensation for the planes grounded at present. Dialogue is still on with Boeing for compensation and as soon as the plane will return to service, the compensation can be expected within months, Ajay Singh added.

As the only Indian buyer of Boeing MAX aircraft, SpiceJet hopes for MAX’s return even when the company is also eyeing a deal with Boeing’s chief rival Airbus for new aircraft. Speaking to the news channel, the SpiceJet co-founder said that switching to other aircraft will not be an easy option for the domestic carrier and it has to keep the replacement costs in mind. Also, Boeing MAX has proved to be a low-cost aircraft for the airline in the past, making it the company’s focus for now.

Earlier, SpiceJet was reported to be mulling a deal for at least 100 Airbus SE planes which may cost the airline as much as $10 billion, Bloomberg reported Ajay Singh as saying. In the interview with CNBC TV-18 on Thursday, Ajay Singh reiterated the airline’s interest in Airbus. 

Why is MAX grounded?

The American planemaker Boeing has been in soup for one of the biggest crises in its over century-old history. In March 2019, one of its Boeing 737 MAX planes, which was deployed by Ethiopian Airlines, crashed leading to death of 346 people. The faulty aircraft was grounded across the globe over concerns regarding safety issues. 

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