Aviation regulator DGCA is carrying out operational and financial scrutiny of cash-starved SpiceJet to ensure that passengers do not face any inconvenience and safety-related issues, Civil Aviation Minister K Rammohan Naidu said on Tuesday.
"The immediate activity in the ministry regarding SpiceJet is that we have operational and, to a certain extent, financial scrutiny also being done from the ministry through the DGCA because we don't want any lapse in safety," Naidu said on the sidelines of signing pacts with states for the next phase of Udaan in the national capital.
The remarks by the aviation minister come as the loss-making airline continues to face multiple headwinds resulting in frequent flight delays and operational issues. The airline's domestic market share dropped to 1.6% in July 2026 from 1.9% in June, as per the latest official data.
Naidu said the ministry was continuously engaging with the airline, but there were limits to how far the government could intervene in a privately-run airline. "There are certain limits with which the government also can operate with them," he said.
Naidu added that the government has extended the ECLGS (Emergency Credit Line Guarantee Scheme) to help airlines that might face problems due to the West Asia crisis. SpiceJet has been given Rs 150 crore under the ECLGS scheme.
"Our major priority right now is to ensure the passengers shouldn't face any inconvenience, the safety shouldn't be compromised at any cost in terms of operations, and then smooth operations are sustained within the airline," he said.
The airline is facing significant financial issues, and there has been a delay in payment of salaries to the staff. SpiceJet reported a cumulative net loss of approximately Rs 1,141 crore across the first three quarters of FY26. It is yet to announce Q4FY26 results.
As per sources, salaries have not been paid to many employees since May. The situation escalated on Saturday morning at Indira Gandhi International Airport (New Delhi), with staff allegedly not reporting for duty over unpaid salaries for the last three months. Multiple sources confirmed the development resulted in four SpiceJet flights being delayed by hours.
Meanwhile, SpiceJet earlier this month said it has finalised lease agreements with three aircraft operators for the induction of 20 planes. These are 15 Boeing and 5 Airbus aircraft to be taken under damp and wet lease agreements to expand operations during the winter schedule.
