SpiceJet is undergoing financial scrutiny by the Directorate General of Civil Aviation as the airline faces continuing financial and operational challenges, Civil Aviation Minister Ram Mohan Naidu said. The government is engaging with the airline to facilitate a resolution, but has limited scope to intervene because SpiceJet is a private carrier, he said.
“Financial scrutiny of SpiceJet is being done by DGCA,” Naidu said in response to a question from NDTV Profit.
The government is engaging with the airline to facilitate the process, Naidu said. “We are engaging to further facilitate things for SpiceJet,” he said.
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Naidu said the government has already provided financial support to the airline. “Rs 150 crore has already been disbursed to SpiceJet,” he said.
The airline will need to work with banks to address its financial position, Naidu said. “These airlines need to work out with the banks,” he said, referring to the financial issues facing private carriers.
He said the government’s priority is to ensure that passengers do not face disruption and that safety standards remain intact.
“Passengers shouldn’t face any issue and safety should not be compromised,” Naidu said.
The comments come as SpiceJet faces continued operational disruptions and a financial crunch. The airline has yet to disburse salaries to employees for the past three and a half months, according to sources cited by NDTV Profit on Sept. 21.
SpiceJet is expected to improve its operations by the middle of October, with the airline planning to wet-lease 20 aircraft, the sources said. Senior officials are also discussing fundraising strategies as the airline awaits Rs 350 crore under the Emergency Credit Line Guarantee Scheme 5.0.
Several SpiceJet flights have been cancelled or delayed in recent months. Flights at Delhi’s Indira Gandhi International Airport were delayed or cancelled on Sept. 19 because of operational disruptions, affecting passengers. Delhi Airport said its teams were coordinating with SpiceJet and other stakeholders to assist those affected.
Naidu had earlier said the ministry, through the DGCA, was conducting operational and financial scrutiny of SpiceJet, with safety remaining the priority. He had also said the government was engaging with the airline but that intervention was limited because SpiceJet is a private carrier.
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