New Delhi: Aviation regulator DGCA is scrutinising SpiceJet’s operations and finances as the airline grapples with flight delays, operational disruptions and financial stress, Civil Aviation Minister K Rammohan Naidu said on Tuesday.
Naidu said the government’s immediate priority was to ensure that passenger safety was not compromised and travellers did not face inconvenience.
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"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 told reporters.
He was speaking on the sidelines of an event in the national capital for signing agreements with states for the next phase of the UDAN regional connectivity scheme.
Naidu said the Civil Aviation Ministry was continuously engaging with SpiceJet but stressed that there were limits to government intervention in the affairs of a privately-run airline.
"There are certain limits with which government also can operate with them," he said.
The minister said the government's priority was to ensure passenger convenience, maintain safety standards and support smooth airline operations.
"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.
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Naidu said the government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) to support airlines facing financial pressures arising from the West Asia crisis.
SpiceJet has received Rs 150 crore under the scheme, he added.
According to sources, the airline is facing significant financial stress and salary payments to some employees have been delayed. Some staff have not received salaries since May, the sources said.
SpiceJet's share of India's domestic aviation market has also declined sharply this year.
Its domestic market share fell to 1.6 percent in July from 1.9 percent in June, according to official data. The airline had a 3.9 percent market share in February.
Amid efforts to expand capacity, SpiceJet on September 3 announced that it had finalised lease agreements with three aircraft operators for the induction of 20 planes.
The airline plans to add 15 Boeing and five Airbus aircraft under damp and wet lease arrangements to expand operations during the winter schedule.
Shares of SpiceJet closed 2.85 percent lower at Rs 9.20 apiece on the BSE on Tuesday.
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