Home / Companies / DGCA to conduct engineering checks on SpiceJet fleet

Airline regulator Directorate General of Civil Aviation, or DGCA, has decided to conduct engineering checks on the fleet of SpiceJet Ltd, following a Mint report in June on the airline cannibalizing some of its aircraft for parts.

“There are serious engineering issues with aircraft in the fleet of SpiceJet," director general Prabhat Kumar said in a note dated 28 July that was reviewed by Mint, “A special engineering audit of SpiceJet may be conducted by a team of DGCA within a period of 15 days."

A DGCA official, who did not want to be identified, said the regulator had sought clarifications from the airline after the Mint report and realized its spare-parts inventory was inadequate. Given that this is an issue of safety, the regulator has launched a full-fledged check, this person said.

The 52-aircraft airline announced record losses of 1,003 crore in 2013-14, five times more than previous fiscal’s. Every day the airline flies it loses 2.75 crore.

Its net worth as on 31 March was a negative 1,020 crore. Accumulated losses increased to 2,189 crore and total debt was 1,736 crore. Its cash balance of 450 crore in 2010 has shrunk to 5 crore as of March end.

A SpiceJet spokesperson said the airline has not received any letter from DGCA on engineering audits.

SpiceJet which has launched several promotional sales this year to gather immediate funds to run the airline was also asked by the regulator to refund money to all passengers on a 16 June flight between Mumbai and New Delhi that was 4 hours and 31 minutes late.

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