SpiceJet’s current predicament is in some ways reminiscent of the Kingfisher Airlines crisis. A sudden reduction of the airline’s fleet, leading to mass flight cancellations, and a mountain of unpaid dues triggered alarm among suppliers and the government.
The civil aviation ministry appears supportive of SpiceJet because it does not want another airline to fail. The real test now will be the capacity of the airline’s chairman, Kalanithi Maran, to raise funds. And he needs to do this quickly.
Maran owns a 53 per cent stake in the airline and will chair a board meeting on Tuesday to discuss recapitalisation measures.
SpiceJet says it is wrong to compare it with Kingfisher Airlines and is confident it will fly out of turbulence. However, the suddenness with which it has scaled down has raised fears that the airline is on the brink of collapse. It also suggests that suppliers and lessors are losing patience.
08/12/14 Aneesh Phadnis/Business Standard
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The civil aviation ministry appears supportive of SpiceJet because it does not want another airline to fail. The real test now will be the capacity of the airline’s chairman, Kalanithi Maran, to raise funds. And he needs to do this quickly.
Maran owns a 53 per cent stake in the airline and will chair a board meeting on Tuesday to discuss recapitalisation measures.
SpiceJet says it is wrong to compare it with Kingfisher Airlines and is confident it will fly out of turbulence. However, the suddenness with which it has scaled down has raised fears that the airline is on the brink of collapse. It also suggests that suppliers and lessors are losing patience.
08/12/14 Aneesh Phadnis/Business Standard
