Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

India aviation regulator halves SpiceJet's capacity after snags

Published 07/27/2022, 08:34 AM
Updated 07/27/2022, 08:45 AM
© Reuters. FILE PHOTO: A man looks out through a window with an advertisement of SpiceJet Airline, on a commercial building in the western Indian city of Ahmedabad February 14, 2014. REUTERS/Amit Dave

BENGALURU (Reuters) - India's aviation regulator on Wednesday ordered SpiceJet to slash its approved fleet to 50% this summer for eight weeks citing safety snags and said it will subject the domestic airline to "enhanced surveillance".

Any increase in number of departures beyond 50% would require the airline to show it has sufficient technical support and financial resources to safely upgrade its capacity, the Director General of Civil Aviation (DGCA) said in an interim order.

"During (the) eights weeks period, the airline shall be subjected to "enhanced surveillance" by DGCA. Further decision in this matter shall be taken thereafter," the regulator said.

Earlier this month, DGCA had issued a warning notice to SpiceJet after a review of incidents, which included a side windshield outer pane that cracked mid-flight and a malfunctioning indicator light.

SpiceJet shares have recovered about 6% this month after dropping to March 2020 lows following DGCA's notice.

NO CANCELLATIONS

SpiceJet sought to reassure its customers and travel partners saying it will operate flights as per schedules and there will be "no flight cancellation as a consequence of this order."

"Due to the current lean travel season, SpiceJet like other airlines had already rescheduled its flight operations. Hence, there will be absolutely no impact on our flight operations," the airline said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.