Govt closely monitoring SpiceJet’s finances and operations: Aviation minister

• The government and DGCA are reviewing SpiceJet’s financial and operational performance amid continuing challenges

• Aviation minister K. Ram Mohan Naidu said passenger safety and regulatory compliance would remain non-negotiable

• SpiceJet is exploring support under the government’s expanded credit guarantee scheme for the aviation sector

The government and aviation regulator Directorate General of Civil Aviation (DGCA) are closely monitoring SpiceJet’s financial and operational performance as the airline works to overcome continuing business challenges, civil aviation minister K. Ram Mohan Naidu said on Tuesday.

Naidu said the DGCA had been asked to review the airline’s operations and finances to ensure that its difficulties did not compromise aviation safety.

The regulator is monitoring SpiceJet’s performance continuously and remains in regular contact with the carrier, he added. The government has also held discussions with the airline and encouraged it to increase operational capacity while stabilising its business.

SpiceJet has been under pressure because of financial constraints, a shrinking fleet and a decline in its share of the domestic aviation market. The carrier is working to restore capacity and improve its operations while seeking additional funding to strengthen its balance sheet.

The airline is also exploring financial assistance under the Emergency Credit Line Guarantee Scheme, which was recently expanded to support carriers affected by wider challenges facing the aviation industry, Naidu said.

Earlier this month, the government approved ECLGS 5.0, allocating Rs 5,000 crore in targeted credit support for the aviation sector.

The scheme is intended to help airlines manage financial pressures arising from disruptions linked to the conflict in West Asia and other industry headwinds.

According to the government, airlines have been affected by rising aviation turbine fuel prices, airspace restrictions and a reduction in international flight operations caused by geopolitical tensions in the region.

Naidu stressed that safety standards would remain non-negotiable. Reviews by the ministry and oversight by the DGCA are aimed at ensuring that SpiceJet’s operational and financial difficulties do not affect its regulatory compliance or passenger safety.

The government’s engagement comes as SpiceJet seeks to rebuild its operational capacity, improve its financial position and regain market share in India’s expanding aviation industry.

With IANS inputs