Govt pushes SpiceJet to step up operations, airline seeks ECLGS funds

Union Aviation Minister Ram Mohan Naidu Kinjarapu stated that the government is pushing SpiceJet to improve its operations. The financially troubled airline is seeking funds through the ECLGS scheme to address its difficulties and grounded fleet.

SpiceJet is trying to avail funds through the Emergency Credit Line Guarantee Scheme (ECLGS) amid its ongoing financial and operational difficulties, while the government has been pushing the airline to step up its operations, Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu said on Thursday.

SpiceJet's Financial Woes and Govt Engagement

Speaking to the media, Naidu said the government regularly engages with airlines to understand their difficulties and challenges and has also been holding discussions with SpiceJet regarding its operational situation. “Every month, we engage with all the airlines regarding whatever difficulties or issues or challenges they have. SpiceJet also, in the same regard, we have been meeting,” Naidu said.

The minister said the government has been pushing SpiceJet to increase its operations, particularly by addressing its financial situation. “And we have been pushing them to step up their operations, especially mainly the financial side of it. And they have also assured that they will be doing it quite soon,” he said.

SpiceJet, the Indian low-cost carrier, has been facing a long-running financial crisis that has left most of its fleet on the ground.

When asked whether the airline had sought any additional financial support from the government, Naidu said it had not sought such support. However, he said SpiceJet was trying to avail funds through the ECLGS scheme. “No, in terms of support, there is the ECLGS scheme. They are trying to avail some money through that scheme,” Naidu said.

ECLGS 5.0 Scheme for Airlines

In view of the financial stress faced by airlines due to the sharp increase in ATF prices, compounded by airspace closures and reduced operations, particularly on international routes, leading to lower aircraft utilisation and liquidity constraints, the Union Cabinet in May, chaired by Prime Minister Narendra Modi, has approved the ECLGS 5.0 scheme to provide targeted credit support to Indian airlines.

The minister’s comments come as the government continues to engage with airlines over operational and financial challenges. In the case of SpiceJet, the focus is on helping the airline step up its operations while addressing the financial issues affecting its ability to operate its fleet.

Naidu also said the government engages with airlines every month on issues they face, indicating that SpiceJet’s operational difficulties are being discussed as part of these regular interactions.

Investigation into Phuket Incident

The minister was also asked about the investigation into the Phuket incident. He said the case is being investigated by the Aircraft Accident Investigation Bureau (AIB) and that a preliminary report will be released soon. “This is the case of Phuket, which is being investigated by AIB. A preliminary report will be released soon. We will decide what to do next,” Naidu said.

Government Monitoring Airfares

On airfares, Naidu said the government has a tariff monitoring unit that constantly monitors routes where demand is seasonally high. He said the effort is to ensure that airfares do not “go overboard”. He said that whenever an extraordinary circumstance arises, the government can resort to capping, while there is also an international practice of dynamic pricing for airfares.

ATF Price Stabilisation Scheme

On the ATF price stabilisation scheme, the minister said the scheme is still in place, although no airline has used it so far. “No, it is quite there. But we have not seen any airlines come and utilise the scheme yet,” Naidu said. (ANI)

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