The government and aviation regulator DGCA are closely monitoring the financial health and operational performance of budget airline SpiceJet, Civil Aviation Minister K Rammohan Naidu said on Thursday.
The airline has been under pressure amid a reduction in its operational fleet and a sustained decline in its share of India’s domestic aviation market. Official data showed SpiceJet’s domestic market share fell to 1.6% in July, compared with 1.9% in June.
"The civil aviation ministry and the DGCA are keeping a close watch on the financials and operations side of SpiceJet," Naidu told PTI.
SpiceJet Faces Financial and Fleet Challenges
The minister made the remarks while responding to a question about the airline on the sidelines of a conference in New Delhi.
Sources said SpiceJet is dealing with substantial financial difficulties and has delayed salary payments to employees. According to the sources, several staff members have not received their salaries since May.
The airline currently has an operational fleet of 11 aircraft, according to data available on fleet tracking website planespotters.net. Its domestic market share has declined steadily since February, when it stood at 3.9%.
SpiceJet shares also came under pressure on Thursday, falling 5.32% to ₹8.89 at the close.
Airline Plans 20 Aircraft Induction
Seeking to rebuild capacity, SpiceJet announced on September 3 that it had completed lease agreements with three aircraft operators to bring 20 planes into its fleet.
The planned additions include 15 Boeing and five Airbus aircraft under damp and wet lease arrangements. The airline intends to use the aircraft to strengthen operations during the winter schedule.
"The aircraft are scheduled to join the fleet in phases between mid-October and mid-November, ahead of the winter travel peak beginning with the Durga Puja period. The induction will strengthen capacity across SpiceJet's domestic and international network and provide additional capacity through the winter and the following peak summer travel season," the airline had said.
