DGCA puts SpiceJet under enhanced surveillance: What it means
The Directorate General of Civil Aviation (DGCA) has placed SpiceJet, an Indian budget airline, under enhanced surveillance with immediate effect. This decision follows recent operational difficulties faced by the airline at Dubai airport. To recall, Mumbai airport had previously issued a social media warning about SpiceJet's operations but later retracted it after assurances from the airline that issues were being addressed.
A look at SpiceJet's past surveillance history
This is not the first instance of SpiceJet being subjected to such scrutiny. In 2022, DGCA put the airline under surveillance during a period when post-COVID restrictions allowed only limited flights with fare caps. Despite this, the airline continues to operate albeit at a reduced capacity compared to its pre-pandemic levels.
SpiceJet's operational scale
Currently, SpiceJet is operating fewer flights than it did during the fare-capped period. For instance, in July, it operated an average of 703 weekly departures or just 42.45% of what was approved for its summer schedule. The DGCA's latest order does not directly affect operations but could lead to grounding additional aircraft for checks if any discrepancies are found during surprise inspections across the SpiceJet network.
Advice for passengers
Passengers with existing bookings on SpiceJet are advised to check their flight status directly with the airline. Those planning to book a flight should also verify its operational status. Notably, amid this, the airline has managed to carry 4.05 lakh domestic passengers with a load factor of 90.3%, highest among all carriers, even though its average On-Time Performance (OTP) for last week was below 40%.
SpiceJet's current flight schedule
As per data from Cirium, an aviation analytics company, SpiceJet has 117 flights scheduled for Friday. Of these, 104 are domestic while 13 are international. The airline's once extensive international network now includes only three stations: Jeddah, Bangkok, and Dubai. Delhi has 25 scheduled departures, Dubai has 11, and Mumbai has 9. The airline's network spans 32 airports for this schedule.
What next?
News of being under surveillance is never welcome for any airline. The company must quickly reassure the public that their operations are safe. With recent headlines about unpaid employee dues and previous protests, the risk of these issues affecting operations is significant, potentially more so than regulatory checks, especially with the tight schedule.
Airline needs infusion of funds
The delay in payments, especially during festive periods, exacerbates the difficulties faced by the airline's employees, who have also not received mandatory and statutory dues—a situation that has plagued other airlines in the past. The airline urgently needs an infusion of funds, as failure to secure financing could push it toward collapse.
Airline facing financial crisis, shrinking operations
An airline already facing a financial crisis and shrinking operations is a problematic combination. It struggles to attract enough passengers to generate revenue, repay debt, and cover operating costs. According to the DGCA's website, the airline has 55 aircraft, but flight tracking sites indicate that fewer than 24 have been operational in recent days, with the number dropping below 20 on some occasions.
SpiceJet retains international rights
Although the airline's operating permit lists 55 planes, allowing it to retain international rights, failure to pay airport fees could lead to a reduction in flights or, in the worst case, a complete suspension of operations. It remains to be seen how the airlines overcomes this challenge. Passengers should exercise caution in this situation.
