SpiceJet Soars Out of Surveillance: DGCA Lifts Restrictions

The Directorate General of Civil Aviation (DGCA) has removed SpiceJet from its enhanced surveillance regime after the airline addressed deficiencies and secured funds to meet its obligations. The aviation regulator conducted 266 spot checks confirming corrections. Recently, SpiceJet raised Rs 3,000 crore, cleared debts, and improved financial stability.

The Directorate General of Civil Aviation (DGCA) announced on Tuesday the removal of SpiceJet from its enhanced surveillance regime, crediting the airline for taking corrective actions and securing financial resources to fulfill its obligations.

Last month, SpiceJet was placed under stringent oversight by the DGCA due to financial strains that risked compromising aircraft maintenance duties. Since then, the DGCA has performed 266 spot checks at various locations, finding that the identified issues have been adequately addressed by the airline.

SpiceJet raised Rs 3,000 crore from institutional investors, enabling it to settle outstanding dues and salary payments, and finalize agreements with aircraft lessors, leading to a positive market response with its shares rising 1.66% to Rs 66.80 at the BSE.

(With inputs from agencies.)