SpiceJet shares jump 5% after DGCA removes airline from enhanced surveillance regime

economictimes.indiatimes.com:

SpiceJet shares jumped nearly 5% to the day's high of Rs 31 on the BSE after the budget airline company was removed from the enhanced surveillance regime of the aviation regulator. Aviation watchdog DGCA has taken SpiceJet off its enhanced surveillance regime, PTI reported quoting a senior official. The senior DGCA official said that in view of the observations made in the past concerning inadequate maintenance and in view of the incidents during the monsoon season last year, SpiceJet was placed under enhanced surveillance.

«Accordingly, 51 spot checks were conducted across 11 locations pan India, on the Boeing 737 and Bombardier DHC Q-400 fleet of aircraft, wherein a total 23 aircraft were inspected and 95 observations were made by the DGCA teams,» the PTI report said citing the official. The findings were of routine nature and were not considered significant by the Directorate General of Civil Aviation (DGCA), the report further added. On July 12, PTI reported that the Director General of Civil Aviation (DGCA) has put the carrier under «enhanced surveillance» amid multiple financial headwinds in recent months.

However, SpiceJet had refuted any such development, the report then said. The surveillance also came against the backdrop of various lessors seeking repossession of aircraft leased to SpiceJet and some of the cases have been settled by the airline, the report said. SpiceJet, which has been facing various headwinds, has settled the issues with certain aircraft lessors.