Published on 12/04/2019 5:29:08 PM | Source: HT Media

SpiceJet shares zoom 8.5% on plans to induct 16 Boeing 737-800 NG aircraft


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NEW DELHI : Shares of SpiceJet zoomed 8.5% on Friday after the airline announced it will induct 16 Boeing 737-800 NG aircraft, a move that will help in bringing down flight cancellations.

The company's scrip jumped 8.54% to close at ₹109.90 on the BSE. During the day, it rose sharply by 10.61% to ₹112.

In terms of traded volume, 99.96 lakh shares were traded on the BSE during the day.

The company's market valuation also rose by ₹518.9 crore to ₹6,590.90 crore.

The announcement comes at a time when airfares have been on an upswing across India for the past few weeks due to a sharp decline in the number of flights, primarily caused by grounding of around 90% of cash-strapped Jet Airways' 119-aircraft fleet.

SpiceJet grounded 12 Boeing 737 Max aircraft in March over safety concerns following an Ethiopian Airlines plane crash.

"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," the airline said.

Under dry lease, the lessor provides the airline with the aircraft but without any crew member, while under wet lease, the lessor provides the aircraft along with complete crew.

Meanwhile, InterGlobe Aviation's shares rose by 2.11% to close at ₹1,432.15 apiece and Jet Airways (India)'s scrip ended flat at ₹260.45, up 0.02 per cent on the BSE.