During the QIP process, SpiceJet revealed that 36 of its 58 aircraft were grounded, primarily due to alleged payment defaults to lessors | (Photo: Shutterstock)
“Spicejet was placed under enhanced surveillance by the DGCA on September 13 in view of the financial constraints being faced by the operator which could potentially affect discharge of mandatory obligations of aircraft maintenance,” said the DGCA in a press release.
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The DGCA carried out 266 spot checks at various locations as part of the enhanced surveillance mechanism. “It has been ensured that deficiencies and findings found during the spot checks have been subject to suitable rectification action by the operator. In light of the same and the financial infusion of additional funds into the company, Spicejet has been taken off the enhanced surveillance regime,” it noted.
“However, random spot checks shall continue to be carried out across the operational fleet to ensure continuing safety of operations,” it clarified. On September 23, ten days after it was put under enhanced surveillance, the airline had raised Rs 3,000 crore from global investors and mutual funds through the QIP process.
‘Business Standard’ reported last week that the airline has informed the regulator that it will spend Rs 400 crore within the next 24 months to bring its 36 grounded planes back to service.
During the QIP process, the airline said that 36 of its 58 aircraft were grounded, mainly due to alleged payment defaults to lessors, financial challenges impacting aircraft maintenance, and shortages of components and spare parts.
The airline has been making losses for the last six years. The Gurugram-headquartered airline reported a 20 per cent year-on-year (Y-o-Y) decline in consolidated net profit to Rs 158.1 crore in the first quarter of 2024-25.
For the last several quarters, the low-cost carrier has been grappling with a cash crunch amid multiple legal battles over unpaid dues to aircraft lessors, engine lessors and lenders.
First Published: Oct 15 2024 | 1:59 PM IST
By Companies
Source: Companies