Delhi based low-cost airline, SpiceJet’s woes seem never ending. Indian newspapers reported on Wednesday that the airline had been asked by the Delhi airport operator, Delhi International Airport Limited (DIAL), to either clear its pending payments or stop flying from the airport in the national capital of India
While a spokesperson of the airport did not respond to requests for a statement on the issue, people in the know said that the airline has been given a two day deadline to clear its dues.
In a statement, the airline denied that it had been given a deadline and added that there were no immediate concerns about payments. The airline spokesman told the media that it continues to operate flights “normally and our payment obligation to DIAL are being fulfilled as per our regular schedule.”
The news comes days after the Indian aviation regulator put SpiceJet under “enhanced surveillance” again after a recent special audit found certain deficiencies at the airline after reports of cancellation of flights and financial stress.
“This would entail an increase in the number of spot checks/ night surveillance with a view to ensure the safety of operations,” the Directorate General of Civil Aviation (DGCA) said in a media statement.
“It may be recalled that after a series of occurrences reported on the SpiceJet fleet in 2022, a special drive of spot checks was undertaken during which SpiceJet was permitted to release aircraft for operations only after confirming to DGCA that all reported defects/ malfunctions had been rectified. During the year 2023, based on reports of the airline being under financial stress, it was again placed under enhanced surveillance,” said aviation watchdog’s statement added
It may be recalled that the airline also faced trouble at Dubai airport some time back when the ground handling agency declined to check-in passengers on a SpiceJet flight till the agency’s dues were cleared. The SpiceJet aircraft flew back empty to India.
In the last few months, the airline has seen a flight of several top functionaries including the Chief Financial Officer, Chief of Sales and Chief Operating Officer.
The latest trouble for the airline comes even as it announced a profit after tax of Rs 1.5 billion for the quarter ended June 2024. It also announced plans to raise Rs 30 billion by this month. Incidentally, the auditors have a qualified opinion on the airline’s results.
The promoter of the airline, Ajay Singh, is said to be close to the ruling dispensation at the Centre, the Bhartiya Janata Party (BJP). Singh had told the media several years earlier at the airline’s headquarters that he was part of the team responsible for drawing up slogans for the BJP during an earlier general election.
Singh also bailed out the government in the Air India divestment process. A public sector entity cannot be sold if there is a lone bidder and at that time Air India was state owned. The government had received only one bid for the sale of the airline, which ran the risk of the divestment process getting derailed. Singh tied up with investors and bid in his personal capacity. Eventually, Air India went to the Indian conglomerate, Tata Sons.
Yesterday on social media there was this report: “@FlySpicejet Delhi-Pune flight delayed indefinitely. Passengers almost ready to beat staff in T1. Was to depart at 11 am. 3 pm now. Sad” Front line staff invariably end up facing the irate traveling public. Everyone has a limit, employees and travelers. Spicejet has faced delayed salaries, and now it is also looking at uncertain fuel supplies. The cocktail of troubles does not send a good signal to the market. And as we see, the airline is pitching investors.
