Enhanced surveillance! DGCA extends 50% cap on SpiceJet flights till October 29; stock ends over 4% lower

The Directorate General of Civil Aviation (DGCA) has extended the limit on SpiceJet flights by a little over a month as a matter of “abundant caution”, the air safety regulator said in an official order on Wednesday. He also said that during this period the airline will be subject to “enhanced surveillance” by the regulator.

On July 27, 2022, the DGCA had directed SpiceJet to operate a maximum of 50 percent of its flights, which were approved in the summer schedule for a period of eight weeks due to a series of incidents related to their flights.

“…The review has indicated that there is an appreciable reduction in the number of security incidents. However, out of an abundance of caution, the competent authority has decided that the restrictions imposed in the order of 27.07.2022 which continue will be in force till the end of summer time (which ends on October 29, 2022),” the DGCA said in its order.

Any increase in the number of departures beyond 50 percent of the total number of approved departures under the 2022 summer schedule during this period will be subject to the airline “demonstrating to the satisfaction of the DGCA that it has sufficient technical support and financial resources to safely and efficiently undertake this enhanced capability,” the order said.

The Gurugram-based budget operator has been facing a severe liquidity crunch for quite some time now. SpiceJet reported a net loss of Rs 789 crore in the June quarter, as well as a net loss of Rs 458 crore in the quarter ended March 2022.

The company in a statement said it has sent certain leave without pay (LWP) for three months from September 21.

The company’s shares declined more than 4 percent to settle at Rs 41.85 each on the BSE. During the day, it fell 4.24 percent to Rs 41.75.

With PTI tickets

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