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Sunday, 24 August 2014

As SpiceJet drags feet on info, DGCA audit of airlines to miss deadline

New Delhi: The financial and engineering audit of domestic airlines being conducted by the Directorate General of Civil Aviation (DGCA) will get delayed, with low-cost carrier SpiceJet yet to furnish complete information, a top official at the aviation regulator told FE.

To assess the operational health of airlines reeling under accumulated losses of almost Rs 50,000 crore, the DGCA had first asked all carriers to submit detailed financial data for the 2013-14 fiscal by mid-June. Later, in July, it again asked for additional inputs. This information is expected to primarily help in assessing the safety preparedness of the airlines, and understand whether the recent trend of aggressive price discounts is sustainable.


“We had hoped to conclude our study by end-August, but now it will get delayed at least by a month. Spicejet is yet to submit all of the information,” the DGCA official said.

Added another industry source close to the development, “Spicejet has submitted a good amount of data previously, and the remaining will be submitted very shortly”.
Read news in full 22/08/14 Indian Express
Though SpiceJet has been improving market share and passenger load factor in the past months, it is believed to be behind on several payments. (Reuters)

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