A golden rule of business is to never to let your firm’s troubles reach the customer. But it was one that SpiceJet broke repeatedly, starting from the fag end of October when things began unravelling at the Chennai-based airline.
Flights were delayed and rescheduled at short notice, leaving disgruntled flyers. In fact, at the Kempegowda International Airport in Bengaluru on October 30, passengers trying to board the early-morning Chennai flight found no staff at the SpiceJet counters. They had gone on a flash strike for non-payment of dues. It was only hours later that an airline official came to inform irate passengers that their flight would take off in the afternoon.
By December, when the airline announced that it was cancelling over 1,800 domestic flights — on average around 80 a day — during the month, SpiceJet was all but tottering.
But why did an airline once considered the best alternative to Delhi-based IndiGo and voted the top low-cost carrier in 2012 by the Travel Agents Association of India fumble so badly? What went wrong?
In hindsight, it is clear that the airline made a few wrong turns. In 2010, SpiceJet decided to place orders for Bombardier Q400 aircraft, when most airlines in the country had Airbuses or Boeings.
The price of the 15 Bombardier Q400s was $450 million, the first of which joined the fleet in 2011. SpiceJet’s rationale to opt for the 70-seater Bombardier Q400s was that it would widen its network in smaller towns and cities. Its owner, Kalanithi Maran, said at the time that they were “expected to totally change the lives of the people in tier 2 and 3 cities by making flying more affordable.”
16/12/14 K Giriprakash/Business Line
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Flights were delayed and rescheduled at short notice, leaving disgruntled flyers. In fact, at the Kempegowda International Airport in Bengaluru on October 30, passengers trying to board the early-morning Chennai flight found no staff at the SpiceJet counters. They had gone on a flash strike for non-payment of dues. It was only hours later that an airline official came to inform irate passengers that their flight would take off in the afternoon.
By December, when the airline announced that it was cancelling over 1,800 domestic flights — on average around 80 a day — during the month, SpiceJet was all but tottering.
But why did an airline once considered the best alternative to Delhi-based IndiGo and voted the top low-cost carrier in 2012 by the Travel Agents Association of India fumble so badly? What went wrong?
In hindsight, it is clear that the airline made a few wrong turns. In 2010, SpiceJet decided to place orders for Bombardier Q400 aircraft, when most airlines in the country had Airbuses or Boeings.
The price of the 15 Bombardier Q400s was $450 million, the first of which joined the fleet in 2011. SpiceJet’s rationale to opt for the 70-seater Bombardier Q400s was that it would widen its network in smaller towns and cities. Its owner, Kalanithi Maran, said at the time that they were “expected to totally change the lives of the people in tier 2 and 3 cities by making flying more affordable.”
16/12/14 K Giriprakash/Business Line
