SpiceJet Shares Plunge on DGCA Surveillance
Aug 30, 2024 10:50
SpiceJet shares dropped over 6% after the DGCA placed the airline under enhanced surveillance due to safety concerns and financial stress. The aviation regulator found deficiencies during a special audit.
Photograph: Amit Dave/Reuters
New Delhi, Aug 30 (PTI) Shares of SpiceJet on Friday morning tumbled over 6 per cent after aviation watchdog DGCA decided to place the crisis-hit firm under enhanced surveillance.
The stock tanked 6.38 per cent to Rs 62 on the BSE after a weak beginning.
DGCA on Thursday decided to place SpiceJet under enhanced surveillance that will entail increased spot checks and night surveillance to ensure safety of the airline's operations.
Based on reports of cancellation of flights and financial stress being experienced by SpiceJet, DGCA said it conducted a special audit of the airline's engineering facilities on August 7 and 8 and certain deficiencies were found during the audit.
"In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect.
"This would entail an increase in the number of spot checks/night surveillance with a view to ensure safety of operations," the Directorate General of Civil Aviation (DGCA) said in a release on Thursday.
In 2023 also, the regulator had placed SpiceJet under enhanced surveillance.
The no-frills carrier has been grappling with multiple headwinds, including financial and legal woes, and is also in the process of raising funds.
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