Budget carrier SpiceJet share prices fell 11% intraday on July 12 after reports that the aviation regulator put the company under enhanced surveillance.

The Directorate General of Civil Aviation (DGCA) has put SpiceJet under “enhanced surveillance” after the budget airline flew into multiple financial headwinds in recent months.

A senior DGCA official said, “SpiceJet has been under enhanced surveillance since June 22, 2023”. When contacted, a SpiceJet spokesperson said, “No such communication has been received by the airline from the DGCA.”.

The enhanced surveillance has been going on for more than three weeks now, and it is an ongoing process; it includes increased night surveillance and spot checks. The official added that enhanced surveillance is also to check whether safety obligations are being followed.

SpiceJet has been facing various headwinds. On June 2, the airline announced that it had entered into a settlement agreement with Nordic Aviation Capital (NAC), a lessor for its Q400 planes.

The airline has been trying to raise funds but has not made significant progress. The only funding in recent times has come in the form of more loans under the emergency credit line guarantee scheme. The board is meeting on Wednesday to discuss raising funds.

Troubles have been mounting in Ajay Singh-led SpiceJet since last week after the Supreme Court ordered it to “forthwith” pay Rs 380 crore to the airline’s former promoter Kalantihi Maran and his Kal Airways in a seven-year-old share transfer dispute.