India's Directorate General of Civil Aviation has lifted the enhanced surveillance regime it has imposed on SpiceJet (SG, Delhi International) in August after finding the carrier has corrected earlier identified deficiencies. The safety regulator also says a recent INR30 billion rupee (USD357 million) capital raise has reassured it that the low-cost carrier is getting its affairs in order.

“A total of 266 spot checks have been carried out by the DGCA across various locations as part of the enhanced surveillance mechanism," a DGCA spokesperson said. "It has been ensured that deficiencies and findings found during the spot checks have been subject to suitable rectification action by the operator. In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime. However, random spot checks shall continue."

The DGCA imposed the additional oversight after conducting audits of SpiceJet's engineering facilities in August and found a series of "deficiencies." The DGCA was also concerned that SpiceJet's financial problems could “potentially affect (the) discharge of mandatory obligations of aircraft maintenance."

ch-aviation has contacted SpiceJet for their response to this week's DGCA decision.

Meanwhile, the recent capital raising is also allowing SpiceJet to settle lease liabilities. Having recently come to terms with Engine Lease Finance Corporation and BBAM, SpiceJet said in an October 15 Bombay Stock Exchange filing that it had also settled its lease debts of USD23.39 million with Aircastle and Wilmington Trust SP Services (Dublin) for an aggregate sum of USD5 million.

"Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom," the filing reads. "As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums."

All four lessors had been pursuing SpiceJet through the National Company Law Tribunal, the country's specialist bankruptcy court. However, several other lessors and creditors still have cases before the same court, including TechJockey InfoTech Private Limited; Alterna Aircraft V.B. Limited; Shannon Engine Support Limited; DAE Capital SPVs AWAS 36695 Ireland Limited, AWAS 36698 Ireland Limited, and AWAS 36694 Ireland Limited; and Aviator Capital SPV Aviator ML 29641.