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SpiceJet’s declining financial situation.

SpiceJet Ltd. is now the best-performing airline in Asia, struggling with a series of negative publicity caused by a series of seemingly innocuous but frequent technical glitches. SpiceJet faced ninth incident in 24 days. The airline reported a loss of Rs 458 crore for the January-March quarter, compared to a loss of Rs 235 crore in the same period last year. In fiscal 2022, the airline lost Rs 1,725 ​​crore against a loss of Rs 998 crore in the previous fiscal. The airline also failed to restore pilot pay even after a surge in domestic demand and delayed the release of quarterly results for the three months ending in March, citing a ransomware attack on its servers. He is also reportedly behind on legal fees.

Even after this sharp decline in fortunes, Ajay Singh is still making a decent profit as he acquired the shares at a paltry sum of ₹2 per share from Sun Group’s Kalanithi Maran. So what is the problem with SpiceJet? The incidents have revived concerns about the airline’s reliability, prompting India’s aviation regulator to issue a scathing announcement about its “poor internal safety oversight and inadequate maintenance actions”, which it said had “resulted in reduced safety reserves”.

SpiceJet, one of India’s top five domestic carriers, has been plagued by an unusually high number of delays in recent months compared to other airlines. Between June 20 and July 8, the airline reported at least eight incidents of technical malfunction. The regulator says it was observed that on many occasions the planes “either turned back to the origin station or continued to land at the destination with the Delhi High Court on July 18 rejecting a petition by a lawyer seeking to stop the airline’s services due to safety concerns . The matter did not fall within their domain, the judges said.

ON May 4, 2022
Chennai-Durgapur flight turns back after oil filter warning.

May 28, 2022
Windshield cracking on Mumbai-Gorakhpur flight.

June 19, 2022
Cabin pressure did not increase during the Delhi-Jabalpur flight.

A Patna-Delhi flight made an emergency landing after an engine caught fire.

July 2, 2022
Smoke was observed in the cabin of a Jabalpur bound aircraft. The flight returns to Delhi.

July 5, 2022
A Delhi-Dubai flight made an emergency landing in Pakistan’s Karachi after a fuel gauge malfunction.

Windshield cracked during Kandla-Mumbai flight.

Cargo plane bound for Chongqing returns to Calcutta after weather radar failure.

According to ET NOW sources, SpiceJet is said to be in active discussions with the Middle Eastern carrier for a possible stake sale. SpiceJet promoter Ajay Singh holds about 60 percent stake in the airline operator.



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