DGCA removes SpiceJet from Enhanced Surveillance Regime, Credit Suisse contempt plea adjourned

In a big relief to SpiceJet, India's aviation regulator DGCA has removed the airline from its enhanced surveillance regime. Following this, the shares of the airline jumped nearly 5% to the day's high of Rs 31 on the BSE.

The DGCA has said that the airline has taken sustainable maintenance action. This, after DGCA had conducted 51 checks in 11 places in India on the airline’s fleet, which includes Boeing 737 and Bombardier DHC Q-400 aeroplanes.

"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," PTI report said citing the official.

Also Read: Delhi HC observes fraud charges against SpiceJet CMD 'Serious in nature'

SpiceJet was placed under enhanced surveillance after DGCA observed that the airline undertook inadequate maintenance last year. Earlier, PTI reported that the surveillance 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.

Meanwhile, SpiceJet has also got one more breather with the Supreme Court adjourning the Credit Suisse contempt plea against the airline without issuing notice. Credit Suisse had filed a plea in the Supreme Court alleging that SpiceJet has failed to pay dues that were a part of a settlement deal.

During the hearing, Credit Suisse's lawyer had argued that they have not received any amount towards the principle that SpiceJet owes them. He mentioned that the outstanding due is at $4 million. Meanwhile, SpiceJet's lawyer has said that they will continue paying $500,000 on the 15th of every month.

Following this the Supreme Court had adjourned the case to the third week of August.