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    Fitch says Boeing 737 Max grounding pushed up Indian airfares, to hurt Asian airline industry more in Q2

    Fitch says Boeing 737 Max grounding pushed up Indian airfares, to hurt Asian airline industry more in Q2

    Fitch says Boeing 737 Max grounding pushed up Indian airfares, to hurt Asian airline industry more in Q2
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    By Reuters  IST (Published)

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    The Indian aviation market, however, has seen a sharp rise in airfares in the recent months due to tight supply, partly worsened by the suspension of the 737 MAX, Fitch said.

    Fitch Ratings said on Friday the impact on the airline industry in Asia from the grounding of Boeing 737 Max jets has been muted so far but may worsen in the second quarter of 2019.
    Boeing's top-selling aircraft has been grounded worldwide since the March 10 Ethiopian Airlines disaster, which killed 157 people, and came just five months after a Lion Air crash in Indonesia that killed 189.
    The Indian aviation market, however, has seen a sharp rise in airfares in the recent months due to tight supply, partly worsened by the suspension of the 737 MAX, Fitch said.
    In India, SpiceJet has 13 of these aircraft in its fleet while Jet Airways has eight. Till now, Boeing continues to defend its case, stating that the flight is safe to fly.
    "We remain confident in the fundamental safety of the 737 MAX," CEO Dennis Muilenburg said in a statement, adding that impending software fixes would make the aircraft "among the safest airplanes ever to fly."
    The 737 MAX has been the fastest selling airplane in Boeing's history. A total of 59 airlines have already acquired this aircraft and 387 aircraft were operational worldwide, until the grounding order.
    The grounding of the model has had a limited impact on the fares and performances of airlines in most markets due to seasonally low demand in the first quarter, Fitch said in its report.
    It added that there is limited flexibility for airlines to switch to alternatives from Airbus or Boeing.
    A preliminary report in the Ethiopian crash on Thursday showed that the doomed 737 MAX jet hit excessive speed and was forced downwards by a wrongly-triggered automation system as pilots wrestled to regain control.
    (Some inputs in the copy were added by the CNBC-TV18 Web Team)
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