DGCA's regulatory monitoring need not be construed as fresh finding of safety deficiencies: SpiceJet

NEW DELHI: SpiceJet on Monday said DGCA's regulatory monitoring should not be construed as a fresh finding of safety deficiencies against the airline.

In a clarification to the BSE, the budget carrier, which has been facing operational and financial headwinds, said it was aware of the Directorate General of Civil Aviation's (DGCA) regulatory monitoring.

DGCA routinely undertakes safety audits, surveillance and spot checks of airlines as part of its regulatory oversight. SpiceJet has also undergone various such regulatory exercises in the past, and the regulatory monitoring should not be construed or represented as a new declaration or finding of safety concerns against the company, it said in a filing.

The stock exchange had sought a clarification from SpiceJet on September 22 after Civil Aviation Minister K Rammohan Naidu said the airline was under DGCA scrutiny.

"The current regulatory monitoring/review relating to the company's broader operational and financial position may not be equated with, or represented as, a fresh finding of safety deficiencies against the company," the filing said.

In August, the airline's domestic market share declined to 1.2 per cent from 1.6 per cent in July.

Shares of SpiceJet dropped over 2 per cent to Rs 9.10 apiece in late afternoon trade on the BSE.