Mumbai: Ajay Singh, who is having a second stint at SpiceJet, will face a radically different set of challenges running the budget airline now compared with when he took over the reins last in 2005-06.
SpiceJet, like the rest of the industry, was then hit badly by a steep rise in jet fuel price. Now, while crude oil price is down from its peak, SpiceJet has bigger problems of its own, such as the loss of faith among associates and vendors who weren't paid for months.
This, experts say, will create constraints when the airline tries to scale up after receiving funds that the new promoter, Singh, has promised to bring. The other issue may be apathy from a government which may not be always patient with an airline which didn't pay taxes and was on the brink of closure.
30/01/15 Anirban Chowdhury/Ecobomic Times
SpiceJet, like the rest of the industry, was then hit badly by a steep rise in jet fuel price. Now, while crude oil price is down from its peak, SpiceJet has bigger problems of its own, such as the loss of faith among associates and vendors who weren't paid for months.
This, experts say, will create constraints when the airline tries to scale up after receiving funds that the new promoter, Singh, has promised to bring. The other issue may be apathy from a government which may not be always patient with an airline which didn't pay taxes and was on the brink of closure.
30/01/15 Anirban Chowdhury/Ecobomic Times
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