SpiceJet flies 5.5% higher on plans to induct 10 Boeing 737 aircraft

Shares of SpiceJet jumped 5.5 percent in early trade on June 9 after the company announced that it will induct 10 Boeing 737 aircraft from September. The airline has signed a lease agreement for 10 Boeing 737 planes, including five 737 Max.

The low-cost airline is actively engaged in the restoration and revival of its grounded aircraft, which are expected to be back in service soon. Ajay Singh, the chairman and managing director of SpiceJet, had mentioned in an interview with CNBC-TV18 in April that the airline has plans to revive the grounded fleet within the next two to three months. Singh had pointed out the increasing demand and shared hopes that it will last till the year-end.

To address the growing needs of the Indian aviation market, SpiceJet has been working on capacity expansion. The airline is set to induct ten B737 aircraft between September and October. This timing aligns with the peak travel season in India, allowing SpiceJet to introduce new routes and reinforce its presence on existing ones, as stated by Singh.

At 11am, the shares of SpiceJet were trading at Rs 29.09, up 4.12 percent on the National Stock Exchange. Around 27 lakh shares of the company changed hands on the exchanges, as against the one month daily traded average of 25 lakh shares.

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The announcement came just a day after the low-cost carrier said that it had partnered with FTAI Aviation to effectively manage maintenance expenses and minimize aircraft downtime. Under this collaboration, FTAI Aviation will lease up to 20 engines to SpiceJet, along with providing maintenance services.

Also Read: SpiceJet jumps 4% on tie-up with FTAI Aviation

By leveraging the expertise of FTAI Aviation in engine services, SpiceJet will gain access to a pool of available engines, eliminating the need for frequent shop visits and ensuring a smoother operational process. This collaboration forms part of SpiceJet’s revitalization program, aimed at reducing maintenance costs and enhancing overall performance by minimizing aircraft downtime.

The news of a partnership with FTAI Aviation had also set the stock soaring 4.4 percent higher in the previous session.

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