DGCA takes off SpiceJet from ‘enhanced surveillance’ list

The Directorate General of Civil Aviation (DGCA) on Tuesday has taken off SpiceJet from enhanced surveillance after the budget carrier reported infusion of fresh funds for carrying out its operations.

The airline, considered sixth largest in the country in terms of the number of domestic passengers carried, was placed under enhanced surveillance by DGCA on September 13, 2024, in view of the financial constraints being faced by the operator which could potentially affect discharge of mandatory obligations of aircraft maintenance. 

Since then, a total of 266 spot checks have been carried out by DGCA across various locations as part of the enhanced surveillance mechanism. 

It has been ensured that deficiencies and findings found during the spot checks have been rectified by the operator.

Following the rectification and financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime, the DGCA said in a statement. However, it noted that random spot checks shall continue to be carried out across the operational fleet of SpiceJet to ensure continued safety of operations.

Earlier today, SpiceJet announced settling a $23.39-million dispute with two aircraft lessors - Aircastle and Wilmington Trust, days after amicably resolving a similar dispute with BBAM, a US-based aircraft leasing firm.

As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at appropriate forums, the airline said in a statement.

SpiceJet has “successfully settled a $23.39 million dispute with Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd for an aggregate sum of $5 million, together with agreement in relation to the treatment of certain aircraft engines”, the statement said.

Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom, it added.

The settlement follows two other financial agreements by the airline in recent time. On September 24, the company had settled a dispute with Engine Lease Finance Corporation, which initially claimed $16.7 million, for an undisclosed lower amount.