Mumbai: SpiceJet’s share price has hit the upper circuit on news that one of its original promoters, Ajay Singh is likely to be back in the pilot’s seat. There are two main reasons why this is good news for SpiceJet.
First, Ajay Singh is coming back to the airline with a group of investors and will be pumping in the much-needed Rs 1,500 crore into the company.
More importantly, Singh brings to the table his operational expertise in running a low cost airline.
In 2010, when Singh sold SpiceJet to the Marans, it was a profit making entity with cash reserves of close to Rs 450 crore. The Marans managed to run the company into losses which currently stands at Rs 3,000 crore (accumulated), along with liabilities of Rs 1,400 crore.
Singh, on the other hand, ran a tight ship and followed the low-cost carrier model of US-based Southwest Airlines.
16/01/15 Shishir Asthana/Business Standard
First, Ajay Singh is coming back to the airline with a group of investors and will be pumping in the much-needed Rs 1,500 crore into the company.
More importantly, Singh brings to the table his operational expertise in running a low cost airline.
In 2010, when Singh sold SpiceJet to the Marans, it was a profit making entity with cash reserves of close to Rs 450 crore. The Marans managed to run the company into losses which currently stands at Rs 3,000 crore (accumulated), along with liabilities of Rs 1,400 crore.
Singh, on the other hand, ran a tight ship and followed the low-cost carrier model of US-based Southwest Airlines.
16/01/15 Shishir Asthana/Business Standard
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