DGCA places SpiceJet under ‘enhanced surveillance’ amid financial trouble

This would entail an increase in number of spot checks/ night surveillance with a view to ensure safety of operations,” DGCA said in a statement.
DGCA places SpiceJet under ‘enhanced surveillance’ amid financial trouble
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NEW DELHI: In another setback for cash-starved SpiceJet, civil aviation regulator DGCA on Thursday placed the budget carrier under ‘enhanced surveillance’ with immediate effect. SpiceJet will now experience increased spot checks and night surveillance to ensure the safety of the airline’s operations.

“In light of the past record and special audit carried out in August 2024, SpiceJet has been placed under enhanced surveillance with immediate effect. This would entail an increase in number of spot checks/ night surveillance with a view to ensure safety of operations,” DGCA said in a statement.

DGCA stated that based on reports of cancellation of flights and financial stress being experienced by SpiceJet, a special audit of its engineering facilities was conducted on 7th and 8th August 2024, which has revealed “certain deficiencies”. Sources said the Ministry of Civil Aviation is also keeping a close watch on the prevailing situation at the airline.

The action by DGCA comes as SpiceJet passengers on Thursday were again stopped from boarding at the Dubai airport over unpaid dues owed to the airport. When contacted, the airline said operations are now back to normal. “Due to operational reasons, a few SpiceJet flights from Dubai were cancelled... All our scheduled flights from Dubai are now operating as planned,” the airline’s spokesperson said.

Amid mounting financial trouble, which has raised questions on the airline’s ability to remain a going concern, SpiceJet has sent 150 employees on leave without pay. “SpiceJet has made the difficult decision to temporarily place 150 cabin crew members on furlough for three months.

This step has been taken in response to the current lean travel season and the reduced fleet size, with the long-term stability of the organisation in mind,” said the spokesperson. The airline has not paid past two month’s salaries to employees. Not to forget, it has not been making Provident Fund deposits.

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