SpiceJet put under ‘enhanced surveillance’ by DGCA

New Delhi: India's civil avaiation regulator, the Directorate General of Civil Aviation (DGCA) has put SpiceJet under "enhanced surveillance" but there is no operational impact on the airline, an official said on Tuesday

The DGCA official said that it is a step taken as a matter of abundant precaution given the incidents during the monsoon season last year.

“The enhanced surveillance on the airline includes increased night surveillance and spot checks. We will also check whether safety obligations are being followed or not,” the official said.

However, when contacted, a SpiceJet spokesperson said that no such communication has been received by the airline from the DGCA.

While ripples of insolvency cases and financial crisis blow across the aviation industry, SpiceJet claims its better prospects ahead while pointing out nearly completion of its legal battles and successful repayments.

Aircraft lessor Aircastle has recently lodged a fresh insolvency plea against SpiceJet, claiming non-payment of outstanding dues. This marks the third insolvency case filed against the airline, as Aircastle aims to initiate proceedings to recover its debts.

However, concerns regarding the maintainability of Aircastle's second insolvency plea have emerged, with the National Company Law Tribunal (NCLT) seeking explanations from Aircastle's legal representative.

The NCLT has cited relevant legal precedents in its request, highlighting the need for clarification on the plea's validity. A spokesperson for SpiceJet had earlier expressed optimism as the airline's long-pending legal cases approach their conclusion. The spokesperson said that the company is actively settling all ongoing cases, signaling brighter days ahead for the airline.

“Amid a backdrop of protracted legal battles, SpiceJet's commitment to resolving these cases demonstrates a proactive approach to addressing past challenges,” he had said.

“SpiceJet has even successfully completed the repayment of Rs 100 crore to City Union Bank. The final installment of Rs 25 crore was paid on June 30, 2023, effectively closing the entire loan account that was taken in 2012,” the spokesperson had said.