homemarket NewsSpiceJet shares experience turbulence amid recent technical glitches

SpiceJet shares experience turbulence amid recent technical glitches

Due to repeated technical glitches, SpiceJet has been receiving a lot of negative media attention recently. On Wednesday, shares of the company closed at Rs 39 as against Rs 68 at the start of the year, hitting a drop of 40 percent in the past 6 months on the BSE.

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By CNBCTV18.com Jul 7, 2022 3:30:00 PM IST (Published)

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SpiceJet shares experience turbulence amid recent technical glitches
Shares of SpiceJet have been going through a highly turbulent phase since the beginning of this year as a result of technical glitches and non-compliance with mandated training guidelines.

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The stock has been down 34 percent since April when the Directorate General of Civil Aviation (DGCA) restrained 90 of the airline's pilots for not being properly trained to fly Boeing 737 Max aircraft.
However, shares of SpiceJet gained as much as 2.4 percent on Thursday on the BSE. The scrip tanked 7 percent on Wednesday to hit its 52-week low of Rs 35 on the BSE but later recovered all the lost ground and climbed 2.12 per cent to settle at Rs 38.45 apiece.
The aviation regulator on Wednesday issued a show-cause notice to SpiceJet after its aircraft were hit by eight incidents of mid-air technical malfunction over the last 18 days, saying the budget carrier has "failed" to establish safe, efficient and reliable air services.
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Technical glitches on repeat mode
On July 2, a SpiceJet aircraft operating from Delhi to Jabalpur returned safely to the Delhi airport after the crew noticed smoke in the cabin at 5000ft. In response to the incident, the Directorate General of Civil Aviation (DGCA) ordered an investigation. On June 19, a similar incident happened on Patna to Delhi flight.
In July again, due to a malfunctioning indicator light, SpiceJet's Delhi to Dubai flight had to land at Karachi's Jinnah International Airport.
"On July 5, 2022, SpiceJet B737 aircraft operating flight SG-11 (Delhi - Dubai) was diverted to Karachi due to an indicator light malfunctioning. The aircraft landed safely at Karachi and passengers were safely disembarked," SpiceJet said in a statement.
The airline's CMD Ajay Singh said on Wednesday that SpiceJet will now be "doubly careful" and strengthen inspection of aircraft before they leave to operate flights.
"We will work with them (DGCA) to ensure that if they feel that there are any gaps at all in our system, we will address them. There is nothing more important than safety," Singh told.

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