India's DGCA reviews SpiceJet finances and operations amid cash shortage

India's aviation regulator is reviewing SpiceJet's operations and finances while the carrier works through a cash squeeze, schedule disruption and overdue pay for staff.

The Directorate General of Civil Aviation is keeping watch on the airline to make sure its money problems do not put safety at risk, Civil Aviation Minister Ram Mohan Naidu said on September 22, 2026. His ministry stays in touch with the carrier, he said, but its ability to step into the affairs of a privately held airline is narrow. Safe flying and limiting further disruption for passengers are the government's aims.

SpiceJet's position in the domestic market has weakened. Official figures cited by the Press Trust of India put its share at 1.6% in July 2026, down from 1.9% a month earlier.

Staff have gone without pay. Employees were waiting on wages covering three and a half months, according to the account.

On funding, the airline has drawn 1.5 billion rupees, roughly $15.7 million, through the Emergency Credit Line Guarantee Scheme. The government set up that financing to help carriers hit by the Middle East conflict, which has added to SpiceJet's difficulties. Naidu said the airline will have to work with banks to close the rest of its funding gap.

The carrier is also trying to rebuild its schedule, with plans to wet-lease 20 aircraft and steady operations by mid-October. Executives were weighing fundraising options while the company waits on a further 3.5 billion rupees under the credit guarantee.

Separately, in August 2026 the National Company Law Tribunal put off a ruling on bankruptcy petitions after SpiceJet disclosed a settlement reached at the last moment with one of eight lessors. The court criticised the timing of that agreement, saying it had forced a delay in its decision.