SpiceJet shares surge 5% as DGCA removes airline from enhanced surveillance
SpiceJet share price rose nearly 5% on Tuesday’s trading session in response to the aviation regulator Directorate General of Civil Aviation (DGCA) relieving SpiceJet by removing the airline from the enhanced surveillance regime, according to media reports. SpiceJet share price opened at ₹29.70 apiece on BSE. SpiceJet shares touched intraday high of ₹31 and low of ₹29.40.
Given the issues the SpiceJet reported during the monsoon season of last year, the airline was placed under enhanced surveillance about a fortnight ago in order to take ample safeguards. Before removing the airline from the enhanced surveillance regime, up to 51 spot checks on the carrier’s fleet of Boeing 737 and Bombardier DHC Q-400 aircraft were carried out across 11 locations in India, according to various media reports.
“The findings (during spot checks) were of routine nature and were not considered significant by DGCA. Suitable maintenance action was taken by the airline to address the findings in accordance with DGCA guidelines. As a consequence, SpiceJet has been taken off the enhanced surveillance regime by DGCA,” the civil aviation regulator said, according to ANI’s report.
Following a series of safety concerns with SpiceJet, the regulator requested SpiceJet reduce its overall flying schedule by 50% for eight weeks on July 27 last year. The airline was under ‘Enhanced surveillance’ throughout this time. On October 30 of last year, the restrictions were removed.
The DGCA had issued a show-cause notice to SpiceJet last year after noticing numerous issues with the airline last year.
On the technical front, as per trendlyne data, SpiceJet share price fell 22.9% and underperformed its sector by 94.7% in the past year.
“The stock has been a relative underperformer and there are no signs of buying interest. Hence, one should avoid any bottom fishing in this stock,” said Ruchit Jain, Lead Research Analyst at 5paisa.
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Updated: 25 Jul 2023, 01:11 PM IST
