SpiceJet crisis: DGCA reviews operations, finances as airline faces challenges

The Directorate General of Civil Aviation (DGCA) is conducting operational and financial scrutiny of SpiceJet amid continuing delays and other operational challenges, Civil Aviation Minister K Rammohan Naidu said on Tuesday.

Naidu said the government’s immediate priority is to ensure that safety is not compromised and passengers do not face inconvenience. However, he also pointed out that the government’s ability to intervene in the functioning of a privately owned airline is limited.

SpiceJet’s domestic market share fell to 1.6 per cent in July from 1.9 per cent in June, according to official data. The airline’s share had stood at 3.9 per cent in February.

The government has also extended support under the Emergency Credit Line Guarantee Scheme (ECLGS) to airlines affected by financial pressures linked to the West Asia crisis. Naidu said SpiceJet has received Rs 150 crore under the scheme.

The minister said the government is maintaining continuous engagement with the airline, with safety and the continuity of operations being the key priorities. Reports have also pointed to financial stress at the carrier, including delays in salary payments to employees.

Despite the challenges, SpiceJet is preparing to expand its fleet ahead of the winter travel season. The airline has finalised agreements with three aircraft operators to induct 20 planes — 15 Boeing and five Airbus aircraft — through wet- and damp-lease arrangements. The aircraft are expected to join the fleet between mid-October and mid-November, with SpiceJet targeting around 200 daily flights during the winter schedule.

with inputs from PTI