Years ago, Warren Buffett lost money on his investments in US Airways. After the bad experience, he swore off airline investments altogether. But this year, he made a huge investment in Precision Castparts, a company that makes components for airplanes. Buffett may be convinced that airlines cannot make money for him, but he is also certain that sale of airplanes is not slowing anytime soon.
This dichotomy defines India's aviation business too. While Indian skies are littered with disasters, falling crude prices and lower fares are leading to a boom in air traffic. It's possibly this belief that brought Ajay Singh back to SpiceJet, and helped him steer the airline on the path of recovery.
Last December, SpiceJet had almost been written off as a failed company. It was struggling to pay its outstanding dues and consequently had to ground its flights for days. Everything that could go wrong with an airline went wrong with it. A turnaround at that time seemed impossible and bankers were convinced it was going the Kingfisher way.
23/12/15 Malini Bhupta & Aneesh Phadnis/Business Standard
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This dichotomy defines India's aviation business too. While Indian skies are littered with disasters, falling crude prices and lower fares are leading to a boom in air traffic. It's possibly this belief that brought Ajay Singh back to SpiceJet, and helped him steer the airline on the path of recovery.
Last December, SpiceJet had almost been written off as a failed company. It was struggling to pay its outstanding dues and consequently had to ground its flights for days. Everything that could go wrong with an airline went wrong with it. A turnaround at that time seemed impossible and bankers were convinced it was going the Kingfisher way.
23/12/15 Malini Bhupta & Aneesh Phadnis/Business Standard
