SpiceJet (SG, Delhi International) calls reports India's Directorate General of Civil Aviation (DGCA) has put it under so-called enhanced surveillance "absolutely incorrect." The denial is despite the Press Trust of India (PTI) outlet citing an unnamed DGCA official saying the agency has stepped up its oversight of the under-pressure airline since June 22.
"The information is absolutely incorrect and is strongly denied," reads a SpiceJet statement on the matter. "No such communication has been received by the airline from the DGCA."
The PTI report says the added scrutiny of its operations, which is an ongoing process, includes increased night surveillance and spot checks and is reportedly designed to ensure that the airline does not cut corners regarding safety because of financial pressures. "We will check whether safety obligations are being followed or not," the DGCA source said.
The DCGA previously placed SpiceJet under enhanced surveillance during 3Q 2022, when it asked the airline to reduce its flights by 50% after a series of safety incidents. The DCGA dropped back to standard surveillance on October 30.
The stepped-up surveillance, if occurring, has not had any operational impact on SpiceJet, which is about to receive an INR5 billion Indian rupee (USD61 million) equity contribution from its promoter, Ajay Singh, paving the way for the airline to access another INR2.06 billion (USD25.1 million) from the Indian government's Emergency Credit Line Guarantee Scheme, and providing the airline with some short term financial relief.
Singh says SpiceJet wants to reactivate aircraft and expand its network via a combination of codeshares, focusing on non-tier one domestic cities, and expanding its international network. However, multiple creditors have other ideas, with some successfully convincing the DGCA to de-register aircraft at SpiceJet and others, including Aircastle, Willis Lease Finance, and Wilmington Trust, all seeking to have the airline declared insolvent.
