The Directorate General of Civil Aviation (DGCA) announced on Tuesday that it has removed SpiceJet from the enhanced surveillance regime, a measure put in place in response to financial and operational concerns. This decision follows actions taken by the budget carrier to rectify deficiencies in its operations and raise funds to meet its financial obligations.

The airline was placed under enhanced surveillance on September 13 after financial constraints raised concerns about SpiceJet’s ability to fulfil mandatory obligations, particularly regarding aircraft maintenance. As part of the surveillance, the DGCA conducted 266 spot checks at various locations to monitor the airline’s compliance with safety and maintenance standards.

In a statement, the aviation regulator noted that SpiceJet had successfully addressed the deficiencies identified during the spot checks. “In light of the same and the financial infusion of additional funds into the company, SpiceJet has been taken off the enhanced surveillance regime,” the DGCA said. However, the watchdog also stressed that random spot checks will continue across SpiceJet’s operational fleet to ensure the ongoing safety of its operations.

SpiceJet has faced multiple challenges in recent months, including financial difficulties and legal disputes with aircraft lessors. However, the airline has made notable progress in stabilizing its situation, including raising Rs 3,000 crore from institutional investors. This capital infusion allowed the company to clear dues, pay pending staff salaries, and resolve disputes with some aircraft lessors.

Shares of SpiceJet responded positively to the news, with the airline’s stock rising 1.66% to Rs 66.80 per share in afternoon trading on the BSE.

SpiceJet Settles $23.39 Million Dispute with Aircraft Lessors

In a significant financial development, SpiceJet announced on Tuesday that it had successfully settled a $23.39 million dispute with two aircraft lessors—Aircastle (Ireland) Designated Activity Company and Wilmington Trust SP Services (Dublin) Ltd. The settlement follows a similar resolution reached earlier this month with U.S.-based leasing firm BBAM.

As part of the agreement, SpiceJet will pay $5 million to resolve the dispute, which also includes terms for the treatment of certain aircraft engines. Both parties opted for an amicable settlement, choosing to resolve the matter outside of court.

Ajay Singh, Chairman and Managing Director of SpiceJet, expressed optimism about the airline’s future, stating, “We have successfully resolved this long-standing dispute with Aircastle and Wilmington Trust. With this and other significant settlements, SpiceJet continues to strengthen its financial position and lay the groundwork for a more resilient future.”

The settlement with Aircastle and Wilmington Trust follows two other financial agreements reached in recent weeks. On September 24, SpiceJet resolved a $16.7 million dispute with Engine Lease Finance Corporation (ELFC), and earlier in October, the airline settled its dispute with BBAM.

A Path Toward Financial Recovery

With these settlements, SpiceJet is making substantial progress in addressing its financial challenges, which have included legal disputes and operational difficulties. The airline remains focused on enhancing its financial stability and building a stronger foundation for the future. However, the continued spot checks by the DGCA serve as a reminder that SpiceJet must uphold its operational integrity as it navigates its path to recovery.