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MAX grounding: SpiceJet considering Boeing's compensation offer


MAX grounding: SpiceJet considering Boeing's compensation offer

SpiceJet on Friday said it is considering the "interim offer of compensation" made by Boeing for grounded 737 MAX planes. The no-frills carrier has been impacted by the grounding of its 13 Boeing 737 MAX planes since March last year as it is incurring various costs related to the aircraft.

"Despite its inability to undertake revenue operations, the group continues to incur various costs with respect to these aircraft," Singh said in the note to the airline's consolidated financial statements for the year to date period ended December 2019. SpiceJet is the only domestic carrier that has MAX planes. These aircraft were grounded worldwide after two fatal accidents in late 2018 and early 2019.

According to Singh, the airline is considering an interm offer of compensation made by Boeing. In relation to MAX planes, certain costs, including aircraft and supplementa lease rentals, totalling Rs 537.27 crore have been recognised as other income during the nine months ended December, as per the notes.

The amount includes Rs 246.42 crore recorded in the quarter ended December. Shares of SpiceJet rose nearly 6 per cent to close at Rs 89.60 on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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