New Delhi: In a major relief for SpiceJet, aviation regulator DGCA said it has removed the low-cost carrier from enhanced surveillance regime. This action comes as the regulator is satisfied that SpiceJet is taking actions to rectify deficiencies following the fundraising.
The Directorate General of Civil Aviation (DGCA) had placed Spicejet under enhanced surveillance on September 13, 2024 over a severe cash crunch at the airline which had impacted its ability to discharge mandatory obligations of aircraft maintenance.
This action had resulted in increased spot checks and night surveillance to ensure the safety of the airline’s operations. DGCA said 266 spot checks were conducted at various locations as part of monitoring effort. It said deficiencies identified during these checks were addressed appropriately by the airline.
“In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime,” DGCA said in a statement.
DGCA will continue to carry random spot checks across the airline’s operational fleet to ensure safety standards.
Since the enhanced surveillance was placed, SpiceJet has successfully raised Rs 3,000 crore via sale of shares to qualified institutional buyers. It is using this money to pay lenders and expand its fleet.
SpiceJet said it has settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Limited for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines. This came a day after it was reported that SpiceJet is staring at fresh insolvency proceedings initiated by aircraft lessor Aviator ML 29641 Ltd over unpaid dues amounting to Rs 58 crore. The lessor claimed that SpiceJet failed to pay rental charges for a Boeing 737 that it had leased.
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