DGCA allows SpiceJet to operate with full capacity from Oct 30

The regulator had on July 27 capped the low cost carrier's departures at 50% of full capacity for eight weeks, citing multiple safety-related concerns

The Directorate General of Civil Aviation (DGCA) on Friday revoked the 50 per cent cap on budget carrier SpiceJet’s flights, a source familiar with the aviation regulator’s thinking told DH.

"SpiceJet will be allowed to operate from October 30 at full capacity in the winter session," the source said on condition of anonymity.

The winter session starts on October 30 and will continue till March 25, 2023.

SpiceJet did not immediately respond to a request seeking comment on the development. DGCA is yet to officially comment on the issue.

The move comes four days after the regulator had directed embattled SpiceJet to undertake analysis of engine oil samples from its Q400 fleet and other inspections, after one of its planes made an emergency landing at Hyderabad airport due to smoke in the cabin.

The regulator had on July 27 capped the low cost carrier's departures at 50 per cent of full capacity for eight weeks, citing multiple safety-related concerns.

This cap was then extended until October 29 in a subsequent decision by the DGCA last month.

The regulator had said that during the extended period, the airline would have to demonstrate that it had sufficient technical support and financial resources “to safely and efficiently undertake enhanced capacity" if it were to increase its operations beyond 50 per cent.

Besides being in the news for several safety-related incidents, the airline has also been reeling through a financial crisis - the airline had reported a loss of Rs 1,725.47 crore in FY22, as against Rs 998 crore in FY21.

"The rupee at 83 has resulted in very high operating costs. Hence, I am not too optimistic of any significant recovery of losses," said Mark D Martin, founder and chief executive of Martin Consulting.

SpiceJet resuming back at 100 per cent with the current demand for air travel and a shortage of fleet and capacity in the market, will ease ticket pricing this Diwali holiday season, he added.

(With inputs from Shemin Joy in New Delhi)