New Delhi: High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article.
A month ago, SpiceJet, one of India’s three large private airlines, seemed headed on a similar trajectory to Kingfisher Airlines, the carrier brought down by heavy debts in 2012.
Today, however, SpiceJet is poised for a course correction after Kalanithi Maran, the media magnate and the carrier’s controlling shareholder, agreed to hand ownership to Ajay Singh, the founder, as part of a rescue plan.
Mr Singh has expressed confidence in SpiceJet’s prospects for a turnround after five consecutive quarters of losses. His optimism reflects the improving climate for India’s struggling airlines amid a sharp drop in oil prices, accelerating economic growth and New Delhi’s growing interest in the stability of private carriers.
“We could be looking at an inflection point for the industry,” says Kapil Kaul, head of the Indian arm of the Centre for Asia Pacific Aviation, a research and consulting firm. “We would expect a profitable business for most of the players in the market in the next year.”
20/01/15 Amy Kazmin/Financial Times
To Read the News in full at Source, Click the Headline
A month ago, SpiceJet, one of India’s three large private airlines, seemed headed on a similar trajectory to Kingfisher Airlines, the carrier brought down by heavy debts in 2012.
Today, however, SpiceJet is poised for a course correction after Kalanithi Maran, the media magnate and the carrier’s controlling shareholder, agreed to hand ownership to Ajay Singh, the founder, as part of a rescue plan.
Mr Singh has expressed confidence in SpiceJet’s prospects for a turnround after five consecutive quarters of losses. His optimism reflects the improving climate for India’s struggling airlines amid a sharp drop in oil prices, accelerating economic growth and New Delhi’s growing interest in the stability of private carriers.
“We could be looking at an inflection point for the industry,” says Kapil Kaul, head of the Indian arm of the Centre for Asia Pacific Aviation, a research and consulting firm. “We would expect a profitable business for most of the players in the market in the next year.”
20/01/15 Amy Kazmin/Financial Times
