SpiceJet faces government scrutiny over safety and finances

The Indian government, through the Directorate General of Civil Aviation (DGCA), has intensified its oversight of SpiceJet due to the airline’s mounting financial difficulties and operational challenges. Civil Aviation Minister K Ram Mohan Naidu confirmed that regulators are conducting thorough reviews of both the carrier’s financial health and its daily operations to ensure passenger safety and prevent service disruptions.

SpiceJet is currently facing significant headwinds, including a dwindling fleet, declining domestic market share, and reported delays in staff salary payments. The airline reported a cumulative net loss of approximately Rs 1,141 crore across the first three quarters of FY26. To mitigate these pressures, the government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) to the aviation sector, with SpiceJet receiving Rs 150 crore to help manage outstanding dues and stabilize operations amidst rising fuel costs and geopolitical tensions in West Asia.