Govt, DGCA Monitor SpiceJet Financials & Operations

New Delhi, Sep 10 (PTI) The government and aviation regulator DGCA are closely watching the financials and operations of budget carrier SpiceJet, Civil Aviation Minister K Rammohan Naidu said on Thursday.

SpiceJet, which has been witnessing a decline in the number of operational planes as well as the domestic market share, has been facing multiple headwinds.

In July, the airline's domestic market share dropped to 1.6 per cent from 1.9 per cent in June, as per the latest official data.

"The civil aviation ministry and the DGCA are keeping a close watch on the financials and operations side of SpiceJet," Naidu told PTI.

The minister was responding to a query regarding SpiceJet on the sidelines of a conference in the national capital.

Sources said the airline is facing significant financial issues and there has been a delay in payment of salaries to the staff. Salaries have not been paid to many employees since May, they added.


The airline has an operational fleet of 11 planes, as per information available on fleet tracking website planespotters.net.

Since February this year, SpiceJet's domestic share has been on the decline and at that time, it stood at 3.9 per cent.

On Thursday, shares of SpiceJet fell 5.32 per cent to close at Rs 8.89 apiece.

Meanwhile, on September 3, SpiceJet said it has finalised lease agreements with three aircraft operators for the induction of 20 planes.

These are 15 Boeing and 5 Airbus aircraft to be taken under damp and wet lease agreements to expand 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.