Mumbai: Promoters of airline companies deserve bravery awards. For a sector that is profusely bleeding with no hope in sight, they are still willing to pump in money, either by selling their “family silver” as in the case of Vijay Mallya or pumping in fresh capital generated through other businesses as has been recently done by the Marans, promoters of SpiceJet and Sun TV.
While Mallya’s Kingfisher didn’t get the airline business dynamics, the same cannot be said about SpiceJet. After the initial freebees, Kingfisher realised that the only thing that works is “cattle class” or low fare.
SpiceJet, which started off by following Southwest Airlines model, the only profitable airline in the world at that time, has lost the plot under Marans. The company is soon expected to encounter rough weather like its peers Kingfisher, Jet Airways and Air India.
The Marans have announced that they will be pumping in roughly Rs 200 crore using the convertible warrants instrument. The company said that it needs capital for expansion and is looking at equity from its shareholders and also raise debt.
22/11/12 Shishir Asthana/Business Standard
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While Mallya’s Kingfisher didn’t get the airline business dynamics, the same cannot be said about SpiceJet. After the initial freebees, Kingfisher realised that the only thing that works is “cattle class” or low fare.
SpiceJet, which started off by following Southwest Airlines model, the only profitable airline in the world at that time, has lost the plot under Marans. The company is soon expected to encounter rough weather like its peers Kingfisher, Jet Airways and Air India.
The Marans have announced that they will be pumping in roughly Rs 200 crore using the convertible warrants instrument. The company said that it needs capital for expansion and is looking at equity from its shareholders and also raise debt.
22/11/12 Shishir Asthana/Business Standard
