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SpiceJet moves to fill void as Jet Airways’ groundings continue, fares rise

Financial Express 2019-04-12 12:04:08
The additional aircraft would join the fleet, in the coming ten days, subject to approval by the regulatory authorities, SpiceJet said.

Even as troubles for aviation sector continue amid grounding of JetAirways’ planes, SpiceJet announced to induct new aircraft to reduce flight cancellations and expand presence on domestic and international routes.

“SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a No Objection Certificate (NOC) to import the aircraft,” news agency PTI reported citing the airline.

Also read: Jet Airways crisis: Aviation minister Suresh Prabhu directs review of passenger issues

The additional aircraft would join the fleet, in the coming ten days, subject to approval by the regulatory authorities, it added.

Following the plane crash of Ethiopian Airlines last month, SpiceJet pulled out  12 “737 Max” aircraft in March over safety concerns adding to the number of flight cancellations on various routes.

SpiceJet share price gained more than 7 per cent as airline announced plans to induct sixteen planes over the next ten days. The shares of the airline were trading at Rs 108.00, up 6.75 points, or 6.67 per cent at the time of reporting.

Also read: Mumbai Airport stake sale: GVK, Bidvest fail to reach settlement

The announcement comes a day after cash-strapped Jet Airways grounded nearly 90 per cent of airline’s 119-aircraft fleet. Jet Airways on Thursday reportedly cancellation to flights to various international destinations and even domestic routes including East and Northeast regions.

Suresh Prabhi, Union Minister of Civil Aviation, earlier today said that the DGCA has been directed to review issues concerning Jet Airways which is currently operating with a fleet of less than ten aircraft.

Meanwhile, Jet Airways founder Naresh Goyal pledged 26 per cent stake in the debt-ridden airline on April 4 in form of security for loans from Punjab National Bank (PNB), according to a regulatory filing. In March, he and his wife Anita Goyal made exit from the board of the company as part of a debt resolution plan.

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