DGCA conducting operational, financial scrutiny of SpiceJet: Aviation minister Ram Mohan Naidu

With passenger convenience and safety at the centre as SpiceJet faces frequent delays and operational issues, aviation watchdog DGCA is carrying out operational and financial scrutiny of the budget carrier, Civil Aviation Minister K Rammohan Naidu said on Tuesday.

DGCA scrutiny amid safety concerns

Naidu said the ministry was in continuous engagement with the airline, but also made it clear that there were limits to how far the government could intervene in the affairs of a privately run carrier.

The comments come at a time when SpiceJet's domestic market share has continued to decline, falling to 1.6 per cent in July from 1.9 per cent in June, according to official data.

"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," Naidu was quoted as saying by PTI.

Government says intervention has limits

The minister was responding to a query regarding SpiceJet on the sidelines of signing pacts with states for the next phase of Udaan in the national capital.

Naidu said the ministry was continuously engaging with the airline, but there were limits to how far the government could intervene in a privately-run airline.

"There are certain limits with which government also can operate with them," he said.

ECLGS support and passenger priority

Naidu further said the government has extended the ECLGS (Emergency Credit Line Guarantee Scheme) to help airlines that might face problems due to the West Asia crisis. He said SpiceJet has been given Rs 150 crore under the ECLGS scheme.

"Our major priority right now is to ensure the passengers shouldn't face any inconvenience, the safety shouldn't be compromised at any cost in terms of operations, and then smooth operations are sustained within the airline," he said.

According to sources, the airline is facing significant financial issues, and there has been a delay in payment of salaries to the staff. Salaries have not been paid to many employees since May, they added.

SpiceJet plans fleet induction, shares rise over 2%

Earlier this month, SpiceJet said it has finalised lease agreements with three aircraft operators for the induction of 20 planes, including 15 Boeing and 5 Airbus aircraft, to be taken under damp and wet lease agreements to expand operations during the winter schedule.

Shares of SpiceJet are trading at ₹9.42 apiece on the BSE, up 2.61 per cent from the previous closing level, as the airline remained under scrutiny over its operations, finances and passenger service.