Why SpiceJet is being probed by DGCA
What's the story
The Directorate General of Civil Aviation (DGCA) is conducting an operational and financial scrutiny of budget carrier SpiceJet. The move comes as the airline faces a string of challenges, including frequent flight delays and operational issues. Civil Aviation Minister K Rammohan Naidu confirmed the development while emphasizing the ministry's limitations in intervening with private carriers.
Safety concerns
Safety paramount, says Naidu
Naidu said, "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."
He stressed that their primary focus is on ensuring passengers aren't inconvenienced and that safety isn't compromised at any cost.
Financial woes
Staff salaries delayed since May
Sources told PTI that SpiceJet is facing severe financial issues, leading to delayed salary payments for its employees. Many staff members have reportedly not been paid since May.
In light of this, Naidu said the government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) to help airlines struggling due to the West Asia crisis.
Under this scheme, SpiceJet has received ₹150 crore in funding.
Market impact
Airline's domestic market share drops to 1.6%
SpiceJet's operational challenges have directly affected its market position. The airline's domestic market share fell to 1.6% in July from 1.9% in June, according to the latest official data. This decline has been consistent since February this year when its domestic share was at 3.9%.
Expansion efforts
SpiceJet moves to expand capacity
Despite the ongoing challenges, SpiceJet is trying to expand its capacity.
On September 3, the airline announced that it had signed lease agreements with three aircraft operators for 20 planes.
The expansion plan includes 15 Boeing and five Airbus aircraft under damp and wet lease agreements to support operations during the upcoming winter schedule.