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SpiceJet, a prominent Indian budget airline, finds itself under heightened scrutiny once again, following a series of flight cancellations and reports of financial difficulties. This marks the second time in two years that the airline has been placed under “enhanced surveillance” by the Directorate General of Civil Aviation (DGCA), the country's aviation regulator.
The DGCA's decision to impose enhanced surveillance stems from concerns regarding the airline's operational stability and financial health. The regulator launched a special audit earlier this month after receiving reports of SpiceJet cancelling flights from Dubai due to non-payment of dues. The audit revealed “certain deficiencies,” prompting the DGCA to place the airline under increased scrutiny, including intensified spot checks and night-time audits to ensure operational safety.
The airline’s recent troubles came to light when SpiceJet was forced to operate multiple empty flights from Dubai as passengers were barred from checking in by airport officials due to unpaid fees. This incident marked the second such disruption this month, raising further concerns about the airline's financial stability.
In response to the cancellations, a SpiceJet spokesperson attributed the issues to “operational problems,” assuring affected passengers that they were accommodated on subsequent flights, other airlines, or offered full refunds. The company also confirmed that all scheduled flights from Dubai are now operating as planned.
However, this is not the first time SpiceJet has faced scrutiny from the DGCA. The airline was previously placed under “enhanced surveillance” in July of last year, following reports of multiple financial issues and lessors seeking the repossession of leased aircraft. While the airline denied these reports at the time, the current situation underscores the ongoing financial challenges it faces.
The DGCA's concerns regarding SpiceJet's operations are not unfounded. In 2022, the regulator imposed restrictions on the airline's operations, limiting its fleet to 50 percent due to a series of safety issues. Subsequent audits led to the release of aircraft only after the airline rectified all defects and malfunctions.
The DGCA's 2022 audit revealed significant shortcomings in the airline's operations, including operating flights with “degraded safety margins,” inadequate internal safety oversight, and delays in payments to vendors leading to a shortage of spare parts. Despite these challenges, SpiceJet's owner, Ajay Singh, maintains that the airline is “100 percent safe” and remains optimistic about its future.
In June, Singh announced plans to raise approximately USD 250 million in the coming months to address the airline's financial difficulties and overcome what he termed “significant black swan events.” He expressed his unwavering belief in the airline's resilience, declaring that it is “difficult to kill SpiceJet.”
The DGCA's decision to place SpiceJet under enhanced surveillance underscores the importance of regulatory oversight in the airline industry. The airline's ongoing financial struggles and operational issues highlight the need for stringent safety measures and transparent financial practices to ensure the well-being of passengers and the stability of the industry.
Source: SpiceJet Faces Spot Checks, Night Surveillance Over Cancellations