Maran takeover speeds decisions at SpiceJet

New Delhi: Decision-making in SpiceJet after it was bought by Sun TV promoter Kalanithi Maran has become faster, say senior staff.
Said a top executive who did not want to be identified: “Earlier, achieving consensus at the board level was very difficult, as the stakeholders had varied interests. This has changed.”
As an example, he said the plan to expand its fleet was on for a long while but the decision could only be taken after Maran took charge.
SpiceJet operates a fleet of 21 aircraft and will induct seven more in the current calendar year. The airline had, before Maran, planned to add only four aircraft.
Kalanithi Maran It now plans to operate 50 aircraft by 2014, having recently ordered for 30 new aircraft with Boeing, at a cost of $2.7 billion (Rs 12,660 crore). Delivery is to start from 2014.
Maran’s entry also saw around half the 20 key managers leaving, starting with Chief Executive Officer Sanjay Agarwal. “All the key top guys he hired left after his exit,” said another executive.
Founding Director Ajay Singh also left the board, though his family and he continue to hold 10 per cent in the airline.
Analysts also believe a strong promoter will give direction to the airline.
02/09/10 Mihir Mishra/Business Standard

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Categories: SpiceJet Sep 2010, Sun Airways Sep 2010