SpiceJet Shares Plummet as DGCA Enforces Enhanced Surveillance Again

Shares of SpiceJet tumbled over 6% after the DGCA placed the airline under enhanced surveillance. The decision follows a special audit uncovering deficiencies and is aimed at ensuring operational safety amidst the carrier's financial and legal troubles. This marks another instance of increased scrutiny for SpiceJet.

Shares of SpiceJet tumbled over 6 per cent on Friday morning after the aviation watchdog DGCA decided to place the crisis-hit firm under enhanced surveillance.

The stock fell 6.38 per cent to Rs 62 on the BSE following a weak beginning.

On Thursday, the DGCA announced that it will increase spot checks and night surveillance on SpiceJet to ensure the safety of its operations.

Following reports of flight cancellations and financial stress at SpiceJet, the DGCA conducted a special audit of the airline's engineering facilities on August 7 and 8, discovering several deficiencies.

"In light of the past record and the special audit carried out in August 2024, SpiceJet has once again been placed under enhanced surveillance with immediate effect. This will involve more frequent spot checks and night surveillance to ensure safety," said the DGCA.

In 2023, the regulator had similarly placed SpiceJet under enhanced surveillance.

The no-frills carrier is currently facing multiple challenges, including financial and legal issues, and is in the process of raising funds.

(With inputs from agencies.)