India's aviation regulator places SpiceJet under operational, financial scrutiny

According to Business Recorder, India's aviation ministry is keeping a close watch on the struggling airline SpiceJet, covering both its operations and its finances. A government official gave the update on Tuesday, linking the move to the carrier's long-running cash flow problems, which the official said were compounded by the continuing conflict in the Middle East.

Civil Aviation Minister Ram Mohan Naidu said at a press conference that the government was tracking the airline's operations and finances through the aviation regulator, with the aim of protecting passenger safety. However, he added that the government's ability to intervene in privately run businesses is limited. The authorities have also extended the Emergency Credit Line Guarantee Scheme (ELGS), and SpiceJet has obtained 1.5 billion Indian rupees ($15.67 million) under it.

The airline, which ranked among India's second-largest domestic carriers by market share in 2019, has since struggled with a shrinking share of the market, higher fuel costs and fierce rivalry. Reuters had earlier reported that the company was pursuing government funding after delaying pilot salary payments this year, months before the minister's press conference.