DGCA Warning: SpiceJet Says None Of Its Boeing 737 NG Aircraft Impacted

SpiceJet Ltd. on Monday said that none of its Boeing 737 NG aircraft were affected by a jammed or restricted rudder control system. This was in light of the Directorate General of Civil Aviation issuing recommendations on Boeing 737 aircraft equipped with Collins Aerospace SVO-730 Rudder Rollout Guidance Actuators.

This came off the heels of a recent report by the US National Transportation Safety Board, which highlighted the potential risks of a jammed or restricted rudder control system.

The NTSB report was released following an incident in which a 737 Max 8 aircraft experienced jammed rudder pedals in the neutral position during a landing in Newark in February.

SpiceJet on Saturday said the company has cleared all pending salary and GST dues and has made "significant progress" by depositing 10 months of provident fund dues of employees after the recent fundraise.

The response came after a report by the news agency IANS, which said that the Economic Offences Wing of the Delhi Police has filed a case against the Managing Director of SpiceJet and several senior officials. They are accused of cheating and criminal conspiracy for failing to remit over Rs 65.7 crore in their share of provident fund contributions.

The company also reported successfully reaching settlements with many lessors and remains on track with the financial and operational plan outlined in its qualified institutional placement strategy.

The FIR, lodged based on a complaint from the Employees’ Provident Fund Organisation in Delhi, names several individuals, including Ajay Singh, Shiwani Singh (Director), Anurag Bhargava (Independent Director), Ajay Chhotelal Aggarwal, and Manoj Kumar, as reported by IANS.

The complaint alleges that SpiceJet, which employs over 10,000 workers, withheld 12% of employees' salaries for provident fund contributions from June 2022 to July 2024. However, the airline failed to transfer these amounts to the employees' provident fund accounts within the required 15-day timeframe, thus violating regulations.

Shares of Spicejet closed 8.33% lower at Rs 57.56 apiece on the NSE, compared to a 0.78% decline in the BSE Sensex.

The stock has fallen 4.15% on a year-to-date basis but has risen 59.98% over the past 12 months.

The relative strength index was at 63.17. Out of four analysts tracking the company, one has a 'buy' rating on the stock, two suggest a 'hold' and one recommends a 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target was at a downturn of 18.9%.