New Delhi: India’s civil aviation ministry is closely monitoring SpiceJet’s operational and financial position as the airline continues to deal with financial pressure,
Civil Aviation Minister Ram Mohan Naidu said on Tuesday.
The government is reviewing the airline’s operations through the Directorate General of Civil Aviation (DGCA), while also keeping an eye on its financial position. The ministry has said its priority is to ensure that financial difficulties do not affect flight operations or passenger safety.
Speaking to reporters, Naidu said, “So, the immediate activity in the Ministry regarding SpiceJet is that we have operational and both, to a certain extent, financial scrutiny also being done from the Ministry through the DGCA. Because we don’t want safety to be at any lapse, any lapse in safety shouldn’t be there.”
Delhi: Union Civil Aviation Minister Ram Mohan Naidu says, “So, the immediate activity in the Ministry regarding SpiceJet is that we have operational and both, to a certain extent, financial scrutiny also being done from the Ministry through the DGCA. Because we don’t want safety… pic.twitter.com/dsER4uxFHB
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The minister said the government was also in regular discussions with the airline over its future. However, he pointed out that SpiceJet is a private company, meaning there are limits to how far the government can intervene in its day-to-day operations.
Government support under ECLGS
SpiceJet has been seeking financial assistance as it struggles with cash flow pressures, a shrinking fleet and a decline in its share of the domestic aviation market.
The airline has also sought support under the Emergency Credit Line Guarantee Scheme (ECLGS). The government has extended ECLGS 5.0 to provide financial backing to the carrier amid the impact of declining traffic and disruptions linked to the West Asia conflict.
SpiceJet has received Rs 1.5 billion or about $15.67 million under the scheme, according to the information provided.
Pressure from costs and disruptions
The airline’s financial problems have come amid higher fuel costs, intense competition and weaker market share. The aviation sector has also faced pressure from airspace restrictions and reduced international operations following the conflict in West Asia, which began in late February with US-Israeli strikes on Iran.
Reuters had earlier reported that SpiceJet was seeking government funding after delays in salary payments to pilots.
Once India’s second-largest domestic airline by market share in 2019, SpiceJet has since seen its position weaken as financial and operational challenges have continued.
