The Directorate General of Civil Aviation (DGCA) on Tuesday said that it has removed SpiceJet from its enhanced surveillance regime. The airline, which has been facing multiple headwinds, was placed under enhanced surveillance recently.
On 27 July 2022, the civil aviation regulator asked SpiceJet to cut the total number of flights by 50 per cent for eight weeks after repeated safety incidents with the airline. During this period, the airline was subject to “enhanced surveillance”. The restrictions were lifted on October 30 last year.
Thereafter, DGCA had put the low-cost carrier under "enhanced surveillance" again after it was facing multiple financial headwinds in recent months. Various lessors were seeking repossession of aircraft leased to SpiceJet and some of the cases have been settled by the airline. On July 11, DGCA had placed SpiceJet under the enhanced surveillance regime.
Following this, the civil aviation regulator conducted 51 spot checks across 11 locations on the airline's Boeing 737 & Q-400 after it raised concerns about inadequate maintenance by the airline following multiple incidents during the monsoon season last year.
The DGCA in the recent surveillance inspected 23 aircraft, and made 95 observations in this regard, which were mostly routine in nature. The enhanced surveillance includes increased night surveillance and spot checks.
Suitable maintenance action was taken by the airline to address the findings in accordance with DGCA guidelines, the civil aviation regulator noted.
As a result of the airline's actions and compliance with the DGCA's requirements, SpiceJet has been removed from the enhanced surveillance regime.
A senior DGCA official said that in view of the observations made in the past concerning inadequate maintenance and in view of the incidents during the monsoon season last year, SpiceJet was placed under enhanced surveillance.
“Accordingly 51 spot checks were conducted across 11 locations pan India, on the Boeing 737 and Bombardier DHC Q-400 fleet of aircraft, where in a total 23 aircraft were inspected and 95 observations were made by the DGCA teams,” the official said.
“Suitable maintenance action was taken by the airline to address the findings in accordance with DGCA guidelines. As a consequence, SpiceJet has been taken off the enhanced surveillance regime by DGCA,” the official said.
Shares of SpiceJet were trading at Rs 30.50 apiece at 11.50 AM on Tuesday, up by 3.21 per cent from the last closure.
In July, the Supreme Court had asked SpiceJet to pay the entire arbitral amount of Rs 380 crore to its former promoter Kalanithi Maran. The business must be carried out with 'commercial morality', the top court said.
However, the Sun Group has rejected any possibility of an amicable settlement with the other party.
On July 24, the Delhi High Court asked SpiceJet Managing Director Ajay Singh to be present in person at the next hearing in the case of non-compliance of its 2020 order asking for an affidavit of the company's assets.
The order was passed on an application filed by Sun Group Chairman Kalanithi Maran, alleging that the low-cost airline did not file an affidavit of assets and liabilites as per the court order. Maran had appealed to execute the arbitral award against SpiceJet. Senior advocate Maninder Singh represented Maran in the case.
Singh argued that Order 21 of the Civil Procedure Code 1908 mandates that a person not filing as affidavit of assets and liabilities as per the court order should be detained in a civil prison.
(With agency inputs)