SpiceJet's Operations, Finances Under Govt Watch: Aviation Minister Ram Mohan Naidu

The Centre and the Directorate General of Civil Aviation (DGCA) are closely examining SpiceJet’s operational and financial condition as the airline continues to face economic pressures, Civil Aviation Minister Ram Mohan Naidu said on Tuesday.

The government is carrying out a review of the airline’s functioning through the aviation regulator, with a focus on ensuring that safety standards remain unaffected amid the company’s financial difficulties.

DGCA conducts SpiceJet review

Speaking to reporters, Naidu said: “So, the immediate activity in the Ministry regarding SpiceJet is that we have operational and both, to a certain extent, financial scrutiny also being done from the Ministry through the DGCA. Because we don’t want safety to be at any lapse, any lapse in safety shouldn’t be there."

The minister said the government is also engaging with SpiceJet on possible future support measures. However, he noted that the airline is privately owned, limiting the extent of direct government involvement.

“And also in terms of the future, we are continuously engaging and seeing that how best we can facilitate from the Ministry. But you also see that these are private airlines, there are certain limits with which government also can operate with them…”

Airline seeks support amid financial stress

SpiceJet has been dealing with financial difficulties, along with a decline in fleet size and market share in domestic aviation. The airline has also explored support through the Emergency Credit Line Guarantee Scheme (ECLGS).

The government had earlier extended ECLGS 5.0 to provide financial assistance to SpiceJet as the airline faced additional pressure due to disruptions caused by the West Asia conflict.

The aviation sector has been impacted by higher aviation turbine fuel prices, airspace restrictions and reduced international operations following the escalation of tensions in West Asia.

The government’s review comes as authorities continue to monitor the impact of these challenges on airline operations and passenger safety.