SpiceJet Cleared: Off DGCA Watchlist

Lease Debts Resolved: SpiceJet Shines

The Directorate General of Civil Aviation said SpiceJet had fixed the flaws previously found. Thus, it dropped the increased surveillance regime established for the airline in August. According to the safety authority, a recent capital increase of INR30 billion (USD 357 million) has given it confidence that the low-cost carrier is taking care of its business.

According to a DGCA representative, the DGCA has conducted 266 spot inspections across different sites as part of the expanded monitoring mechanism.

"It has been ensured that the operator has taken the appropriate corrective measures for any flaws and discoveries made during the spot checks."

Given the factors above and the additional money the company has received, SpiceJet has been removed from the enhanced surveillance regime. Nonetheless, haphazard spot checks will continue to be carried out. The DGCA enforced the enhanced control following assessments of SpiceJet's engineering facilities in August, which revealed several "deficiencies." The DGCA expressed worry that SpiceJet's financial difficulties would impact the company's ability to fulfil its mandatory duties related to aircraft maintenance.

SpiceJet can also satisfy its lease obligations thanks to the most recent cash round. In a report to the Bombay Stock Exchange on October 15, SpiceJet announced that it had paid its lease obligations of USD23.39 million with Aircastle and Wilmington Trust SP Services (Dublin) for a total of USD5 million. This comes after the company reached agreements with Engine Lease Finance Corporation and BAM.

"Both parties have reached this agreement through amicable negotiations, choosing to resolve the matter outside the courtroom," the paperwork states. "As part of the settlement, all ongoing litigations and disputes between the parties will be withdrawn at the appropriate forums."

All four lessors had been pursuing SpiceJet through the nation's specialized bankruptcy court, the National Company Law Tribunal. TechJockey InfoTech Private Limited, Alterna Aircraft V.B. Limited, Shannon Engine Support Limited, DAE Capital SPVs AWAS 36695 Ireland Limited, AWAS 36698 Ireland Limited, and AWAS 36694 Ireland Limited, and Aviator Capital SPV Aviator ML 29641 are among the other lessors and creditors whose cases are still pending before the same court.