SpiceJet tumbles to new 52-week low as DGCA halves capacity

28 Jul 2022 , 11:31 AM

SpiceJet’s counter hit a new 52-week low of Rs34.75 in today’s trade following the aviation regulator DGCA’s direction that the company would operate only 50% of the approved flights for eight weeks.

At around 11.27 AM, SpiceJet’s counter showed some recovery and was trading 5.61% lower at Rs36.15 against its previous close of Rs38.30 on NSE.

The DGCA’s action came after numerous flight safety incidents occurred along with a show-cause notice on the company.

As a response to such direction, SpiceJet claimed that it has already been running half of its approved capacity, emphasizing that the regulator’s restraining order will have no material impact on the company’s operations.

DGCA outlined that any increase in the number of flights over and above the approved limit shall be subject to ‘the airline demonstrating to the satisfaction of the DGCA that it has sufficient and appropriate technical support and financial resources to operate on such increased capacity safely and efficiently.’

The airline shall be subject to ‘enhanced surveillance’ by the regulator during the said eight weeks period.