Troubles for domestic aviation giant SpiceJet mounted on Tuesday after the Indira Gandhi International airport in Delhi handed the airline a two-day ultimatum to clear its pending dues.

If the airline fails the clear the dues, the airport authorities might take stringent action, which essentially means that passengers will be denied boarding on SpiceJet flights.

The budget airline is currently operating with a significantly reduced fleet of approximately 22 aircraft due to financial, legal, and lessor issues. Last week, the airline decided to temporarily furlough 150 cabin crew members for a period of three months. During this time, the affected crew members will remain employed by SpiceJet and will continue to receive their health benefits and accrued leave, according to a spokesperson for the airline. 

The latest setback for SpiceJet comes amid the Directorate General of Civil Aviation (DGCA), the aviation safety regulator, placing the airline under 'enhanced surveillance'.

A senior DGCA official reported that recent flight cancellations and financial difficulties experienced by SpiceJet prompted a special audit of the airline’s engineering facilities on August 7 and 8, 2024. This audit uncovered several deficiencies.

In response to issues reported with the SpiceJet fleet in 2022, the DGCA conducted spot checks, allowing the airline to operate only after verifying that all identified defects had been addressed.

In 2023, due to ongoing financial stress reports, SpiceJet was again placed under enhanced surveillance.

Given the airline's previous record and the findings from the August 2024 audit, SpiceJet is once more under enhanced surveillance. This involves increased spot checks and nighttime monitoring to ensure operational safety.