SpiceJet Cleared from Enhanced Surveillance by DGCA

India’s Directorate General of Civil Aviation (DGCA) has lifted the enhanced surveillance regime imposed on SpiceJet (SG, Delhi International) in August after the airline addressed previously identified deficiencies. The safety regulator noted that a recent capital raise of INR 30 billion (USD 357 million) has provided reassurance that the low-cost carrier is effectively managing its operations.

“A total of 266 spot checks have been conducted by the DGCA across various locations as part of the enhanced surveillance mechanism,” a DGCA spokesperson stated. “It has been ensured that deficiencies and findings identified during these checks have been rectified by the operator. Given this progress and the financial infusion, SpiceJet has been removed from the enhanced surveillance regime; however, random spot checks will continue.”

The DGCA implemented the additional oversight following audits of SpiceJet’s engineering facilities in August, which revealed a series of “deficiencies.” Concerns over the airline’s financial challenges raised alarms about its ability to fulfill mandatory aircraft maintenance obligations.

In response to the DGCA’s decision, SpiceJet is actively settling its lease liabilities, aided by the recent capital raising. The airline recently reached agreements with Engine Lease Finance Corporation and BBAM, and it disclosed in an October 15 Bombay Stock Exchange filing that it settled lease debts totaling USD 23.39 million with Aircastle and Wilmington Trust SP Services (Dublin) for an aggregate sum of USD 5 million.

“Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom,” the filing indicated. “As part of the settlement, all ongoing litigations and disputes will be withdrawn from the appropriate forums.”

Previously, all four lessors had been pursuing SpiceJet through the National Company Law Tribunal, India’s specialized bankruptcy court. However, several other lessors and creditors still have pending cases before the court, including TechJockey InfoTech Private Limited, Alterna Aircraft V.B. Limited, Shannon Engine Support Limited, DAE Capital SPVs, and Aviator Capital SPV.

SpiceJet’s successful navigation of these challenges reflects its commitment to stabilizing operations and enhancing safety standards as it works toward recovery.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com