New Delhi: The decision of SpiceJet promoters Kalanidhi Maran and KAL Airways to handover the airline’s ownership to Ajay Singh on Thursday was cheered by experts, who described the move as a welcome development.
“It’s a welcome development. Failure of an airline with 17 per cent market share is the last thing our beleaguered aviation sector needs. SpiceJet’s revival is good for passengers, employees, lenders, suppliers and the industry as a whole,” Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told Deccan Herald.
Dubey said that Singh, the original promoter, would have to rework his fleet, network and people strategy. With “excellent slots, brand and staff”, he said, the airline can rebuild itself over the next 8-12 months into a “lean, mean and profitable airline” if given the right support.
Referring to government’s help to the airline last month, he said that the government has done well to support SpiceJet’s revival without pumping in any taxpayers’ money.
“It should now focus on long-pending systemic changes regarding ATF pricing, MRO taxes and aerospace manufacturing to develop India into a robust aviation power like China,” Dubey said.
Kapil Kaul, CEO of aviation think tank Centre for Asia Pacific Aviation (CAPA), said that this is a “big positive” on expected lines. “The first step has been taken, the devil may lie in the details though,” he said.
16/01/15 Shemin Joy/Deccan Herald
“It’s a welcome development. Failure of an airline with 17 per cent market share is the last thing our beleaguered aviation sector needs. SpiceJet’s revival is good for passengers, employees, lenders, suppliers and the industry as a whole,” Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told Deccan Herald.
Dubey said that Singh, the original promoter, would have to rework his fleet, network and people strategy. With “excellent slots, brand and staff”, he said, the airline can rebuild itself over the next 8-12 months into a “lean, mean and profitable airline” if given the right support.
Referring to government’s help to the airline last month, he said that the government has done well to support SpiceJet’s revival without pumping in any taxpayers’ money.
“It should now focus on long-pending systemic changes regarding ATF pricing, MRO taxes and aerospace manufacturing to develop India into a robust aviation power like China,” Dubey said.
Kapil Kaul, CEO of aviation think tank Centre for Asia Pacific Aviation (CAPA), said that this is a “big positive” on expected lines. “The first step has been taken, the devil may lie in the details though,” he said.
16/01/15 Shemin Joy/Deccan Herald
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