Why it is a revolving door for CEOs at SpiceJet

New Delhi: Not many were surprised when reports came of Neil Mills quitting as Chief Executive Officer of SpiceJet. The development was in keeping up with the airline’s record of having a CEO for no more than three years.

Since its launch in May 2005, the airline has had three CEOs. The first was Siddhantha Sharma, who joined when the airline started and stayed on till 2008. He was followed by Sanjay Aggarwal, who was CEO till 2010. Then came Mills.
Analysts cite various reasons for the quick turnaround of CEOs at SpiceJet. According to Kapil Kaul, CEO, Centre for Asia Pacific Aviation, previous promoters’ goals were short term, largely driven by their financial interests. This affected SpiceJet seriously as each time the ownership switched, sweeping changes were made at the top, resulting in instability.
Says Amber Dubey, Partner and Head-Aerospace and Defence, KPMG, “Some promoters enter the airline sector driven by the glamorous and macro-economic fallacies like low air travel penetration and rising per capita incomes. That may hold true only for the long term in India. It is the short-term challenges that are the real back-breakers. In the end, it gets really too much for some. Reality dawns that their time, money and efforts may fetch better returns elsewhere.”
Read News in Full 30/07/13 Business Line

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