Sunday, January 04, 2015

What went wrong for SpiceJet at a time when it was headed to recovery & will it survive?

Not long ago, SpiceJet exuded a culture of exuberance and flamboyance synonymous with successful low-cost airlines around the globe. Its cabin crew celebrated Holi in March by dancing on board. The airline introduced 'weekend uniforms' for employees— colourful tops paired with jeans — and played rock songs on flights.

What a difference a few months make. On Christmas, flight crews that broke into a jingle or sported Santa caps to welcome passengers did not belong to SpiceJet. In the two months leading to the New Year, the airline had cancelled more than 2,000 flights. It delayed salaries in December — a dubious first in its nine-year history. 'Jingle Bells, Jingle Bells' was the last thing on the minds of employees.

Even by the unpredictable standards of aviation, SpiceJet has had a nasty ride in recent months. As recent as August, the airline seemed headed towards an improbable turnaround. Buoyed by recurring sales, SpiceJet rapidly increased market share and topped passenger loads.
04/01/15 Binoy Prabhakar/Economic Times
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