SpiceJet To Resume Talks With Boeing For 737 Max Deliveries: CMD Ajay Singh
The budget carrier aims to put 30 Boeing 737 MAX aircraft back into operation within the next 12 to 15 months.
SpiceJet Ltd. is set to engage in discussions with US-based aircraft manufacturer Boeing to resume pending deliveries of B737 Max planes, which are part of an order placed in 2017,, Chairperson Ajay Singh said on Monday.
"We placed an order for 200 aircraft with Boeing in 2017 and received 13 aircraft," the managing director told shareholders at the company's annual general meeting on Monday. we will talk to Boeing to restart deliveries."
In January 2017, SpiceJet entered into a contract with Boeing to buy 205 aircraft, which included 100 737 Max jets worth $11 billion. The delivery of most of these planes was halted due to the airline's financial struggles.
The budget carrier aims to put 30 Boeing 737 MAX aircraft back into operation within the next 12 to 15 months, Singh said. These planes are currently grounded for various reasons, including payment defaults to lessors and shortages of components.
As of November 2024, SpiceJet's operational fleet was only 28 planes out of a total fleet size of 60 , which includes 30 Boeing, 24 Q400 aircraft and six wet-leased planes.
In September, the cash-strapped airline raised Rs 3,000 crore through a qualified institutional placement to operationalise its planes that were grounded due to unpaid dues, as well as expand into new markets.
Singh reassured investors that its recent secured funding is intended to facilitate growth. "We have earmarked Rs 800 crore for the ungrounding and upgrade of our fleet, and I am confident that by 2026, SpiceJet will be operating with a fleet of 100 aircraft," he said.
Earlier this month, SpiceJet entered into an agreement with US-based maintenance, repair and overhaul services provider StandardAero Inc. to restore the grounded Boeing 737-8 MAX fleet. Three aircraft are expected to be join the fleet by April 2025.
For the last six years, SpiceJet has been reporting losses. In the first quarter of fiscal 2025, the airline posted a 20% year-on-year decline in consolidated net profit to Rs 158 crore. Revenue from operations in the period under review fell 15% to Rs 1,708 crore.
Shares of SpiceJet closed 2.14% lower at Rs 55.25 apiece on the BSE, compared to a 0.57% decline in the becnhmark Sensex.
