SpiceJet Taken Off By DGCA From Enhanced Surveillance Regime
SpiceJet raised Rs 3,000 crore from institutional investors, strengthening its financial position and ensuring compliance with maintenance obligations.
The Directorate General of Civil Aviation (DGCA) on Tuesday said it has removed SpiceJet Ltd. from its enhanced surveillance regime, around a month after bringing the private airline under its radar.
SpiceJet has taken measures to rectify the deficiencies detected during a previous round of inspections, which had led to the carrier being placed under surveillance. The DGCA stated that these actions support the airline's compliance with mandatory obligations of aircraft maintenance and improve overall airline safety.
Notably, SpiceJet was placed under enhanced surveillance by the DGCA on 13 September due to the financial constraints being faced by the airline, which could potentially affect the discharge of its maintenance obligations. The DGCA had carried out 266 spot checks as part of the enhanced surveillance mechanism.
"It has been ensured that deficiencies and findings found during the spot checks have been subject to suitable rectification action by the operator," the aviation regulator said.
"In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime. However, random spot checks shall continue to be carried out across the operational fleet to ensure continuing safety of operations," it added.
SpiceJet, last month, raised around Rs 3,000 crore from various institutional investors. Following the fundraise, it reached settlements with several aircraft lessors, paid pending salaries to employees, and cleared some other dues.
Earlier on Tuesday, SpiceJet, in an exchange filing, said it has settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Co., an aircraft leasing company.
Shares of SpiceJet closed 0.76% higher at Rs 66.47 apiece on the BSE, compared to a 0.19% decline in the Sensex. Year-to-date, the stock is up 10.6%.
One out of the four analysts tracking the airline has a "buy" rating on its stock, two suggest a "hold," and one recommends a "sell," according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 29.8%.
