New Delhi, Sep 22 (PTI) Aviation watchdog DGCA is carrying out the operational and financial scrutiny of budget carrier SpiceJet to ensure that passengers do not face any inconvenience, Civil Aviation Minister K Rammohan Naidu said on Tuesday.
As SpiceJet grapples with multiple headwinds resulting in frequent flight delays and operational issues, Naidu also made it clear that the civil aviation ministry has limitations in intervening in the affairs of a private carrier.
In July, the airline’s domestic market share dropped to 1.6 per cent from 1.9 per cent in June, as per the latest official data.
“The immediate activity in the ministry regarding SpiceJet is that we have operational and, to a certain extent, financial scrutiny also being done from the ministry through the DGCA because we don’t want any lapse in safety,” Naidu said.
The minister was responding to a query regarding SpiceJet on the sidelines of signing pacts with states for the next phase of Udaan in the national capital.
Naidu said the ministry was continuously engaging with the airline, but there were limits to how far the government could intervene in a privately-run airline.
“There are certain limits with which government also can operate with them,” he said.
Naidu further said the government has extended the ECLGS (Emergency Credit Line Guarantee Scheme) to help airlines that might face problems due to the West Asia crisis.
He said SpiceJet has been given Rs 150 crore under the ECLGS scheme.
“Our major priority right now is to ensure the passengers shouldn’t face any inconvenience, the safety shouldn’t be compromised at any cost in terms of operations, and then smooth operations are sustained within the airline,” he said.
According to sources, the airline is facing significant financial issues, and there has been a delay in payment of salaries to the staff. Salaries have not been paid to many employees since May, they added.
Since February this year, SpiceJet’s domestic share has been on the decline and at that time, it stood at 3.9 per cent.
Meanwhile, on September 3, SpiceJet said it has 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.
Shares of SpiceJet closed at Rs 9.20 apiece on the BSE, down 2.85 per cent from the previous closing level.
(PTI News)
