The Directorate General of Civil Aviation (DGCA), India's primary aviation watchdog, has commenced a comprehensive operational and financial scrutiny of budget airline SpiceJet. Civil Aviation Minister K. Rammohan Naidu confirmed the move, emphasizing that passenger safety and convenience remain the ministry's top priorities.
Scrutiny Amid Operational Challenges
Minister Naidu's announcement comes as SpiceJet faces increasing scrutiny over frequent flight delays and broader operational issues. The airline has seen its domestic market share decline, falling to 1.6 percent in July from 1.9 percent in June, according to official data.
During a press interaction, Naidu stated, "The immediate activity in the ministry regarding SpiceJet is that we have operational and, to a certain extent, financial scrutiny also being done from the ministry through the DGCA because we don't want any lapse in safety."
Government Intervention Limits and Financial Support
Despite the ongoing engagement with the airline, Minister Naidu clarified that the government's ability to intervene directly in the affairs of a privately run carrier like SpiceJet has limits. He reiterated, "There are certain limits with which government also can operate with them."
The government has extended support to airlines facing difficulties, including SpiceJet, through the Emergency Credit Line Guarantee Scheme (ECLGS). SpiceJet notably received ₹150 crore under this scheme, particularly amid pressures related to the West Asia crisis impacting the aviation sector.
Financial Strain and Future Plans
Sources indicate that SpiceJet is grappling with significant financial issues, including reported delays in salary payments to many employees since May. This financial strain adds another layer to the DGCA's ongoing investigation.
In an effort to bolster its operations, SpiceJet recently announced plans to induct 20 new aircraft into its fleet. This includes 15 Boeing and 5 Airbus aircraft, to be acquired under damp and wet lease agreements, aiming to expand services during the upcoming winter schedule. Shares of SpiceJet traded up 2.61 percent at ₹9.42 apiece on the BSE following these developments, even as the airline remains under intense scrutiny.