Aviation regulator removes SpiceJet from enhanced surveillance regime

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India’s aviation regulator has removed SpiceJet from so-called enhanced monitoring, saying the no-frills airline had taken “appropriate maintenance measures”.

The Directorate General of Civil Aviation (DGCA) has conducted 51 checks at 11 places in India on the airline’s fleet, which includes Boeing 737 and Bombardier DHCQ400 aircraft.

“…a total of 23 aircraft were inspected and 95 observations were made by the DGCA teams. The results were of a routine nature and were not considered significant by the DGCA.”

SpiceJet was placed under surveillance on June 22 after plane crashes during last year’s monsoon season.

The airline reported at least eight incidents of technical failure between June 19, 2022 and July 6, 2022, after which it ordered the Directorate General of Civil Aviation to operate 50 percent of its scheduled flights. The limit was removed on October 21, 2022.

Enhanced monitoring includes more spot checks by the regulator, especially at night. SpiceJet’s share of the domestic passenger market fell from 5.4 percent in May to 4.4 percent in June, according to data from the Directorate General of Civil Aviation.

The Supreme Court on July 7 rejected SpiceJet’s application to extend the deadline for paying interest of Rs 380 crore to media baron Kalanithi Maran and Cal Airlines in a share transfer dispute case.

Cal Airways said on July 10 that there was no question of an amicable settlement with SpiceJet and required the carrier to pay the interest amount in accordance with the court order.

The Delhi High Court on Monday also asked SpiceJet Chairman and Managing Director Ajay Singh to be present in court during the upcoming hearing on September 5. This was pursuant to a request by Cal Airways and Kalanithi Maran for an expedited hearing on its enforcement petition.

The court also issued a notice for SpiceJet and Singh to file an affidavit to disclose their assets before the next hearing.

Singh also announced his decision to inject Rs 500 crore into the cash-strapped airline by underwriting new shares and/or convertible instruments.

The airline’s consolidated net loss swelled to Rs.1,744 crore in FY22, from Rs.1,030 crore in FY21. It did not publish results for FY23, citing the “medical incapacitation” of a key member of its audit committee.