SpiceJet’s finances, operations under government watch as cash flow woes deepen

India’s civil aviation ministry is monitoring SpiceJet’s operations and finances as the airline continues to face cash flow problems, worsened by disruptions linked to the Middle East conflict, Civil Aviation Minister Ram Mohan Naidu said on Tuesday.

The ministry is working with aviation regulators to ensure that the airline’s financial stress does not affect flight operations or passenger safety.

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Naidu said the government was closely tracking SpiceJet but had limited scope to intervene in a privately run company.

The government has extended support to the airline through the Emergency Credit Line Guarantee Scheme (ECLGS). SpiceJet has received ₹1.5 billion, or about $15.67 million, under the scheme.

The minister’s comments come months after Reuters reported that SpiceJet was seeking government funding after delaying salary payments to pilots.

The airline, once India’s second-largest domestic carrier by market share in 2019, has since faced declining market share, higher fuel costs and intense competition.