Few stories arouse as much interest as those involving turnarounds. Stories where entrepreneurs or leaders have managed to script new business strategies to ensure that companies which have run into troubled times are brought back onto the path of sustained profitability. Very often, such turnarounds are undertaken by way of a mix of tough measures to keep costs under control and smart business strategy. Such an effort is currently playing out at low-cost carrier SpiceJet, which, not so long ago, was threatening to drop off the radar and become yet another airline to bite the dust, joining the likes of Vijay Mallya’s Kingfisher Airlines. But timely intervention by SpiceJet’s co-founder Ajay Singh—who had earlier moved away from it when the Marans of the Sun Group took charge—seems to have saved the day for the airline.
The savvy, well-connected entrepreneur that he is, Singh put in place a quick turnaround plan, together with timely infusion of funds and some hands-on decision-making to ensure the airline gradually returns to the profit path. His efforts have also been helped by the easing of fuel prices and some innovative thinking on the operations side. The result: From a loss of over Rs 1,000 crore in FY14, and accumulated losses of Rs 2,500 crore at the end of FY15, the airline has shown modest profits for two consecutive quarters—Q4FY15 and Q1FY16.
19/10/15 Saurav Majumdar/Forbes India
To Read the News in full at Source, Click the Headline
The savvy, well-connected entrepreneur that he is, Singh put in place a quick turnaround plan, together with timely infusion of funds and some hands-on decision-making to ensure the airline gradually returns to the profit path. His efforts have also been helped by the easing of fuel prices and some innovative thinking on the operations side. The result: From a loss of over Rs 1,000 crore in FY14, and accumulated losses of Rs 2,500 crore at the end of FY15, the airline has shown modest profits for two consecutive quarters—Q4FY15 and Q1FY16.
19/10/15 Saurav Majumdar/Forbes India
