SpiceJet inks key pact to revive 3 grounded Boeing 737 MAX aircraft by April 2025

SpiceJet has entered into a services agreement with US-based engine maintenance, repair and overhaul (MRO) provider StandardAero Inc. to operationalise three grounded Boeing 737 MAX aircraft by April 2025, the budget carrier said on Friday.

The agreement includes support for the restoration of the LEAP-1B engines, which power the MAX aircraft. StandardAero will provide quick-time shop visits (QTSV) and performance restoration shop visit (PRSV) services as part of the arrangement.

“The collaboration with StandardAero, CFM International and the lessor is a testament to our commitment to make progressive moves and ensuring the timely return to service of our aircraft,” SpiceJet Chairman and Managing Director Ajay Singh said in a statement.

Seven Boeing 737 MAX aircraft of Spicejet are on the ground.

“The return of three fuel-efficient 737 MAX aircraft will not only strengthen our operations but also provide a significant boost to our financial health,” he added.

The agreement comes on the back of successful resolutions with multiple lessors and other stakeholders, paving the way for the return of the grounded aircraft. SpiceJet has resolved disputes with major lessors including Export Development Canada, Engine Lease Finance Corporation, and Aircastle, among others, over the past two months.

The cash-strapped airline, which has added over 50 new flights in the past two months, aims to leverage the return of these aircraft to further expand its network and improve operational reliability.

The Genesis settlement is the latest in a series of steps by SpiceJet to resolve financial issues and revive its operations. The airline recently raised ₹3,000 crore through a Qualified Institutional Placement (QIP), and, according to its chairman, has used the funds to settle 70% of claims with lessors and vendors.

Shares of SpiceJet fell over 5% to ₹57.88 apiece in afternoon trade on the BSE.