business

SpiceJet shares slump over 6% as DGCA places carrier under enhanced surveillance

On Aug 30, 2024 By PTI

Shares of SpiceJet on Friday (August 30, 2024) morning tumbled over 6% after aviation watchdog Directorate General of Civil Aviation (DGCA) decided to place the crisis-hit firm under enhanced surveillance.

The stock tanked 6.38% to ₹62 on the BSE after a weak beginning.

DGCA on Thursday decided to place SpiceJet under enhanced surveillance that will entail increased spot checks and night surveillance to ensure safety of the airline's operations.

Also Read: SpiceJet plans to lay off 1,000 people

Based on reports of cancellation of flights and financial stress being experienced by SpiceJet, DGCA said it conducted a special audit of the airline's engineering facilities on August 7 and 8 and certain deficiencies were found during the audit.

“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.” DGCA said in a release.

"This would entail an increase in the number of spot checks/night surveillance with a view to ensure safety of operations," the statement added.

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

The no-frills carrier has been grappling with multiple headwinds, including financial and legal woes, and is also in the process of raising funds.

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