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SpiceJet shares slump post grounding of B737 MAX planes; IndiGo climbs

Thursday, March 14, 2019

SpiceJet shares took a beating yesterday after aviation regulator DGCA decided to ground Boeing 737 MAX 8 planes amid safety concerns.

However, airline stocks showed mixed trends as crisis-hit Jet Airways closed in the red while no-frills airline IndiGo gained.    

The scrip of SpiceJet -- which has 12 MAX 8 aircraft in its fleet -- tumbled 8% in intra-day trading but managed to recoup losses to close little over 2% lower at Rs 77.15 on the BSE.

The company's shares opened on a weak note and had slumped 7.99% to touch an intra-day low of Rs 72.50.

The Directorate General of Civil Aviation (DGCA) decision on Tuesday to ground MAX 8 planes comes after a crash of such an aircraft in Ethiopia killed 157 people on Sunday.

Following the move, SpiceJet has grounded all its 12 MAX 8 aircraft resulting in flight cancellations. Jet Airways has 5 such planes but all of them are already  grounded.

Shares of Jet Airways fell 2.06% to end the day at Rs 240.60 on the BSE and had shed nearly 4% in intra-day trade.

The shares fell 1.67% to close at Rs 240.80  on the NSE.

"Consequent to the regulatory directive on the Boeing 737 MAX, SpiceJet has already initiated grounding of its MAX fleet," the airline said in a statement  yesterday.

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