Aviation watchdog checks SpiceJet books and operations as airline faces money and flight troubles

What's Happening

Civil aviation watchdog DGCA is running deep checks on the operations and money matters of budget airline SpiceJet to make sure passengers do not face trouble. Civil Aviation Minister K Rammohan Naidu shared this update on Tuesday in the national capital while signing pacts for the next phase of the Udaan scheme. The airline is dealing with multiple problems that have led to frequent flight delays and service issues. Sources report that SpiceJet is facing deep money troubles and has not paid salaries to many workers since May. Meanwhile, the airline's domestic market share dropped to 1.6 per cent in July from 1.9 per cent in June, falling steadily from 3.9 per cent back in February.

Government Action and Limits

Minister Naidu stated that the government is talking to the airline on a regular basis, but pointed out that the ministry has clear limits on how much it can interfere in the business of a private carrier. The government has extended the Emergency Credit Line Guarantee Scheme to help airlines deal with problems caused by the West Asia crisis, giving SpiceJet Rs 150 crore under this scheme. The main goal of the aviation ministry is to make sure passenger safety is never put at risk and that the airline keeps running smoothly.

Fleet Plans and Stock Price

To help grow operations for the upcoming winter schedule, SpiceJet announced on September 3 that it has locked in lease agreements with three aircraft operators to bring in 20 planes, which include 15 Boeing and 5 Airbus aircraft through damp and wet lease deals. On the stock market, shares of SpiceJet closed at Rs 9.20 each on the BSE, marking a drop of 2.85 per cent from the previous close.