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DGCA India extends flight caps on SpiceJet Limited till October.

India’s aeronautics controller on Wednesday extended the eight-week period for which floundering SpiceJet’s operations had been elided to half of its first approved summer schedule. This restriction will continue till October 29, 2022, when the summer schedule ends.

Following a rash of incidents on the cash-strapped airline, the Directorate General of Civil Aviation (DGCA) assessed this restriction for eight weeks on July 27, 2022, and stated that any improvement in breakouts will be allowed only when SpiceJet is suitable to prove it has the fiscal coffers to do so safely.

On Wednesday, the controller reviewed the situation and stated that the airline had seen a “noticeable reduction in the number of safety incidents.” 
But as a ” matter of abundant caution,( it) has decided that the restriction assessed in the July 27 order shall continue to be in force till the end of the summer schedule — October 29, 2022,” says an order issued by Maneesh Kumar, DGCACommon DG on Wednesday.

Kumar’s order says ” any increase in the number of departures beyond 50 approved under summer schedule 2022 during this period shall be subject to the airline demonstrating to the satisfaction of DGCA that it has sufficient specialized support and fiscal resources to take over similar enhanced capacity. 

During this period, the airline shall be subject to enhanced surveillance. ” SpiceJet’s protagonist has been trying to raise funds and is in contact with colourful players for stake trade. Still, there has been no recapitalization. 

As a result, SpiceJet has been delaying paying whatever chance of hiring it gives to workers; isn’t paying PF to numerous staffers; and is yet to give Form 16 of the last financial. It has transferred 80 aviators on leave without pay for three months.

The only lifeline has been a credit installation of about Rs 200 crore under the exigency credit line guarantee scheme (ECLGS). 
The airline’s problems have worsened in recent months as a result of its inability to recapitalize, despite reported attempts to sell a stake for Rs 2,000 crore.

In the last few months, six Boeing 737s rented to it have been repossessed by letters. SpiceJet’s Chief Financial Officer ( CFO) Sanjeev Taneja abnegated with effect from August 31.

The airline lost Rs. 1725 crore in FY 2022. The company’s accumulated losses as of March 31, 2022, were Rs5,912 crore. Its net worth has fully eroded, with current areas exceeding its current means by Rs. 6,408 crore as on March 31, 2022.

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