The domestic aviation market in India is seeing another airline facing a serious crisis. This time, it’s SpiceJet, a low-cost airline, which is now under strict scrutiny by the aviation regulator. This action could further increase the airline’s problems, which were already growing. This situation brings back memories of the dark history of India’s aviation sector, where the skies were tough for many airlines. Over the past 5 years, 8 airlines in India have shut down their operations.
The Directorate General of Civil Aviation (DGCA) has decided to place SpiceJet under “enhanced surveillance,” reminding people of past troubles in the industry. The DGCA has stated that SpiceJet is being put under this intense watch immediately, which means the airline’s operations will now be closely monitored.
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What Enhanced Surveillance Means
When the DGCA places an airline under enhanced surveillance, it increases spot checks and night surveillance of the airline’s operations. The DGCA usually takes this step when it feels that an airline is not following safety standards properly and there are concerns about its operations.
Audit Uncovers Problems
Before taking this action, the DGCA had already conducted a detailed inspection of SpiceJet’s operations. In a recent statement, the regulator mentioned that it had conducted a special audit of SpiceJet’s engineering facilities on August 7 and 8. The audit revealed several issues, leading the DGCA to put SpiceJet back under enhanced surveillance.
Previous Instances of Increased Surveillance
This is not the first time SpiceJet has been put under enhanced surveillance. The airline faced similar scrutiny twice before: first in 2022, when there were several technical issues with SpiceJet’s planes, and later when news of its financial troubles surfaced. Recently, the DGCA increased surveillance again after SpiceJet placed 150 employees on a three-month unpaid leave due to financial difficulties.
Impact on SpiceJet’s Shares
The DGCA’s action also affected SpiceJet’s stock prices. On Friday, the last trading day of the week, SpiceJet’s shares fell by 5.54% to close at ₹62.56. At one point during the day, the shares dropped as much as 7%, reaching ₹61.99.
Jet Airways Shutdown 5 Years Ago
India’s aviation industry has a history of struggles. This is not the first time an airline has faced such a crisis. Jet Airways, once one of India’s top airlines, had to shut down in April 2019. Last year, Go First also faced significant troubles. Now, SpiceJet is the latest airline in crisis.
Eight Airlines Closed in 5 Years
In the last 5 years, eight airlines have shut down. In 2023, Go First halted its operations due to financial difficulties. In 2022, two airlines—Heritage Aviation Private Limited and Turbo Megha Airways Private Limited—closed down. In 2020, three airlines—Zexus Air Services Private Limited, Deccan Charters Private Limited, and Air Odisha Aviation Private Limited—ceased operations. In 2019, Jet Airways India Limited and Jet Lite India Limited also closed their operations.
