Low-cost carrier SpiceJet has received an interim offer of compensation from Boeing for the grounding of its 13 Boeing 737 MAX planes following a global ban on the aircraft, the airline said on Friday.
The airline had drawn up a claim of 537 crore since the grounding of the aircraft in March 2019. The claim is for expenses incurred on lease rentals and other identified expenses relating to the Boeing 737 MAX aircraft. The update on the status of compensation was part of the airlines financial results for the quarter ended December 31, 2019.
Based on current stage of discussions with, and considering the interim offer of compensation received from, the aircraft manufacturer, its own assessment and legal advice obtained by the company, management is confident of collection of the above income recognised by the company, as per the carriers comments on the financial statement.
In a statement, the carrier said it had recorded a 33% rise in profit to 73.2 crore. Had the company not recognised such other income, the reported profit for the quarter would have been a loss of 1,73.195 crore, said the independent auditors review report made to the board, referring to the compensation claim the airline expects to make to Boeing.