Civil Aviation Minister Ram Mohan Naidu said the Centre and DGCA are watching SpiceJet's operations and finances closely as its cash flow troubles continue.
Naidu said the government's ability to intervene is limited since SpiceJet is a private carrier, though the ministry is exploring ways to help.
SpiceJet has drawn ₹1.5 billion under the ECLGS scheme, and the government has also rolled out ECLGS 5.0 to support airlines hit by disruptions tied to the West Asia conflict.
The Centre is keeping a close watch on SpiceJet's operations and finances as the airline continues to grapple with a cash crunch, Civil Aviation Minister Ram Mohan Naidu said on Tuesday.
Naidu told reporters that the ministry, working through the Directorate General of Civil Aviation, is reviewing both the operational and financial side of the airline's business. He said the priority was ensuring that the airline's money troubles do not spill over into safety lapses, as per an IANS report.
1 September 2026
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According to Naidu, the DGCA's scrutiny is meant to catch any red flags early. He was firm that safety standards could not be allowed to slip, regardless of the financial pressure the airline is under.
At the same time, the minister acknowledged that the government's options are limited. Since SpiceJet is a privately owned carrier, the Centre cannot dictate how it runs its business, even as it stays engaged with the airline to see what support can be offered.
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Support Through Credit Scheme
The government has already stepped in through the Emergency Credit Line Guarantee Scheme, under which SpiceJet has drawn roughly $15.67 million. The airline is learnt to be seeking additional funds under the same route.
Naidu's comments follow a Reuters report from a few months ago that said SpiceJet had approached the government for funding after falling behind on salary payments to its pilots.
Once India's second-largest domestic airline by market share in 2019, SpiceJet has since slipped down the rankings, weighed down by a shrinking fleet, rising fuel costs and stiff competition from rivals. The Centre has held multiple rounds of talks with the airline as it continues to battle this financial stress.
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To cushion carriers from the fallout of the ongoing West Asia conflict, the government has also extended ECLGS 5.0, aimed at helping airlines cope with falling passenger traffic. The conflict, which escalated earlier this year, pushed up aviation turbine fuel prices, triggered airspace restrictions and cut into international flight operations across the industry.
