Ailing airline SpiceJet had cancelled over 1,800 flights till December 31, which has now extended its flight cancellation till January 31.
The year 2014 was a tough phase of the low-cost carrier of India. SpiceJet suffered huge losses where it had declared a highest-ever loss of Rs 1,003 crore, for the fiscal 2013-14.
Although introducing series of discounts and putting several schemes, besides its phase remained uneven.
The situation even worsened more when airline’s senior and experienced people have quit in the past two years.
Second, while the airline was on the way of making losses, despite board took decision to buy a Q400, unfortunately where its operations didn’t go well with the airline. Third, Indigo was posing a big threat to its slots.
Its employees started claiming about the mismanagement and lack of proper leadership and decision making among the new team.
According to the industry onlookers – what went best for the airline during the year (2009-2013) was its management board, which was the backbone of the airline then the time when it was climbing the ladder of success.
Then the board was highly proficient – with Ajay Singh, London-based businessman Bhupendra Kansagra), representatives of US-based investment company Wilbur Ross and Dubai-based Istithmar.
Ajay Singh still owns a stake in the airline even today.
Fourth, what didn’t go well with the SpiceJet after appointing Media Baron Kalanidhi Maran, was his zero experience in the aviation industry.
Hence, its newly appointed staff was also not as compatible as the previous one.
A lesson:
Quality and quantity cannot go parallel successful always. A success in one business certainly cannot lead a success in another field of business. Media and aviation industry are the opposite and unrivaled sectors in the business.
A confidence of hiring a new team and executing it may go well with your time and plan, while on contrary the same confidence may not reap you that expected results.
Old is Gold. The proverb explains well – an experienced and rich background of the team especially related to a specific segment can better lead a company during the time of adversity.
Loan as a helpline and lifeline
Despite SpiceJet’s below par situation, no domestic investor or global airline had shown any interest to revive its economic plight.
However, government has granted a credit-line for fuel for SpiceJet. Further, Civil aviation ministry said that state’s oil companies will be asked to provide credit for 15 days, also airport operators will offer a 15-day payment window.
