Centre, aviation regulator keeping close eye on SpiceJet

SpiceJet founder Ajay Singh. In July, the airline's domestic market share dropped to 1.6 per cent, according to the latest official data. (Archive Photo)

The government and the Directorate General of Civil Aviation (DGCA) are closely watching the financial and operational performance of budget carrier SpiceJet, Civil Aviation Minister K Rammohan Naidu said on Thursday.

SpiceJet has been witnessing a decline in the number of operational planes and consistenly lost domestic market share to powerful rivals IndiGo and Air India.

In July, SpiceJet’s domestic market share dropped to 1.6 per cent from 1.9 per cent in June, according to 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 news agency PTI, while responding to a query on the sidelines of a conference in the national capital.

The airline is reportedly facing significant financial issues and staff salaries have been delayed. Salaries have not been paid to many employees since May, sources told PTI.

The airline has an operational fleet of just 11 planes, according to the information available on fleet tracking website planespotters.net.

Since February this year, SpiceJet’s domestic share has been cracking, coming in at 3.9 per cent presently.

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

On September 3, SpiceJet 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, PTI reported.

“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.