Spicejet Shares Tumble By Over 5% After DGCA Puts The Airline Under 'Enhanced Surveillance'

Embattled low-cost airline Spicejet has found itself sinking in a bigger quagmire as a fresh wave of controversy has hit the AJay Singh-led airline.

The airline was put under 'enhanced surveillance' with immediate effect by the country's civil aviation regulatory body, DGCA.

Under Enhanced Surveillance

This move, which has drawn a significant amount of traction, has also naturally affected its performance at the equity market. Spicejet shares lost over 5 per cent, before even going past the early half of the day's trade on August 30.

The airline was hit with this regulatory scrutiny after reports emerged that passengers were not allowed to board the airline's flights in Dubai. This embarrassment came to pass as the airline had not paid its airport dues.

In a statement, the regulatory body claimed to have conducted a special audit of Spicejet engineering facilities on the 7th and 8th of August 2024. In In this audit, the DGCA found certain 'deficiencies'.

After this development, the DGCA said the airline has been placed under "enhanced surveillance with immediate effect".

Spicejet Shares Slump

The company shares have been on a downward slope since the beginning of the day's trade. After a minor spike to Rs 64.20 per share, the prospects dipped thereafter.

At 11:41 IST, Spicejet shares dipped by 5.21 per cent or Rs 3.45. This took the overall value of the share to Rs 62.78 per piece. The performance of the company has not been on a positive trajectory in the recent past; the company shares have dropped by 3.61 per cent or Rs 2.35 per share.

Meanwhile, Spicejet's competitor and the largest airline in the country, Indigo, was trading in green. Interglobe Aviation Ltd listed on the Bombay Stock Exchange, saw its shares rise by 1.50 or Rs 71.25, taking its value to Rs 4,830.20.