Budget carrier Spicejet has been placed under “enhanced surveillance” by the Directorate General of Civil Aviation after passengers were not allowed to board the airline’s flights in Dubai as it had not paid its airport dues.

“Based on reports of cancellation of flights and financial stress being experienced by Spicejet Airlines, a special audit of Spicejet engineering facilities was conducted on 7th and 8th August 2024 which has revealed certain deficiencies,” the DGCA said in a statement on Thursday.

The DGCA said the airline has been placed under “enhanced surveillance with immediate effect” which entails increased spot checks and night-time audits with a view to ensure operational safety.

SpiceJet had to operate multiple empty flights from Dubai as passengers were not allowed, by airport officials there, to check in because the airline had not paid certain fees.

A SpiceJet spokesperson attributed the cancellations to “operational issues” and said affected passengers were accommodated on subsequent flights or other airlines, or given a full refund.

All scheduled flights from Dubai are now operating as planned, the company said.

Earlier this month, SpiceJet said it reached a settlement with Mumbai airport over “a minor financial matter,” hours after being warned, in a now-deleted social media post, of “temporary disruptions”. On August 12, the CSMIA issued a passenger advisory stating that effective midnight on August 13, SpiceJet flight operations from the Mumbai International Airport were expected to be temporarily disrupted.

“The Mumbai International Airport is working with the airline to address the situation to minimise inconvenience to passengers,” it said.

“The passenger advisory issued by MIAL has been withdrawn. Our flight operations in and out of Mumbai are operating normally. SpiceJet and MIAL have worked collaboratively to swiftly resolve a minor financial matter,” the airline had said.

There have also been reports of SpiceJet delaying salary payments to its employees. Earlier this month, the Delhi High Court ordered SpiceJet to ground three engines leased from French lessors as it had failed to pay up the rentals. The court directed the budget airline to ground these engines by August 16 and return them to the two lessors – Team France 01 SAS and Sunbird France 02 SAS – within 15 days and make further arrangements for inspection. This decision followed the lessors’ rejection of SpiceJet Chairman and Managing Director Ajay Singh’s offer to pledge his shares as collateral for the airline’s outstanding liabilities.

In 2022, following a series of safety issues in quick succession, the DGCA had allowed SpiceJet to operate only 50 per cent of its fleet. The aviation regulator had undertaken audits then too, only allowing the airline to release aircraft after confirming rectification of all defects or malfunctions. It was only on October 30 of that year that SpiceJet was allowed to use its full fleet.