Daijiworld Media Network - New Delhi
New Delhi, Sep 22: The government and aviation regulator Directorate General of Civil Aviation (DGCA) are closely monitoring the financial and operational performance of SpiceJet amid continuing challenges faced by the airline, Civil Aviation Minister K Ram Mohan Naidu said on Tuesday, stressing that passenger safety remains the top priority.
Naidu said the DGCA has been directed to review the airline’s operations as well as its financial position to ensure that its difficulties do not affect aviation safety.
The regulator is continuously monitoring SpiceJet’s performance and maintaining regular engagement with the airline, the minister said. The government has also been holding discussions with the carrier and encouraging it to increase its operational capacity as it works towards stabilising its business.
SpiceJet has been facing financial pressures, a reduced fleet and a decline in its share of the domestic aviation market. The airline has been working to restore its capacity and improve operations while seeking additional financial support to strengthen its financial position.
Naidu said SpiceJet is also exploring financial assistance under the Emergency Credit Line Guarantee Scheme (ECLGS), which the government recently expanded to support airlines facing sector-wide challenges.
Earlier this month, the government approved ECLGS 5.0, allocating Rs 5,000 crore in targeted credit support for the aviation sector.
The scheme is aimed at helping airlines manage financial pressures arising from disruptions linked to the West Asia conflict and other challenges affecting the industry.
According to the government, the aviation sector has been impacted by several factors, including higher Aviation Turbine Fuel (ATF) prices, airspace restrictions and a reduction in international flight operations amid geopolitical tensions in West Asia.
Despite the challenges facing the industry, Naidu said safety standards would remain non-negotiable.
The Civil Aviation Ministry’s review, along with continued DGCA oversight, is aimed at ensuring that operational and financial difficulties faced by the airline do not result in any compromise on regulatory compliance or passenger safety.
The government’s engagement with SpiceJet comes as the airline seeks to rebuild its fleet and operational capacity, improve financial stability and regain market share in India’s expanding aviation sector.