When Jet Airways announced a record net profit of Rs 467.11 crore for the quarter ended December 2015, it was a bitter sweet moment. The taste of profits was sweeter as Jet was just coming out of a turbulent patch, having reported a Rs 2,097.4 crore loss in FY15. Yet bitter, because CEO Cramer Ball, the architect of the airline's dramatic turnaround, had stepped down a few weeks earlier and only had a few more days at the helm.
And so, even as analysts were applauding the turnaround and record profits, doubts lingered about the frequent CEO-level churn at the airline. Ball was Jet's third CEO in 15 months.
Kapil Kaul, CEO south Asia at CAPA Centre for Aviation, a Sydney-based consultant, captures this sentiment well. "Jet Airways' performance in FY 16 has seen significant improvement across key metrics - cost and revenue quality, productivity and efficiency," he says. But he also expresses a concern in the same breath. "I remain concerned with continuous top management churn — indicating risk. Instability at the top will impact turnaround efforts and is perhaps, seriously under estimated by both the promoters.
25/02/16 Anirban Chowdhury/Economic Times
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And so, even as analysts were applauding the turnaround and record profits, doubts lingered about the frequent CEO-level churn at the airline. Ball was Jet's third CEO in 15 months.
Kapil Kaul, CEO south Asia at CAPA Centre for Aviation, a Sydney-based consultant, captures this sentiment well. "Jet Airways' performance in FY 16 has seen significant improvement across key metrics - cost and revenue quality, productivity and efficiency," he says. But he also expresses a concern in the same breath. "I remain concerned with continuous top management churn — indicating risk. Instability at the top will impact turnaround efforts and is perhaps, seriously under estimated by both the promoters.
25/02/16 Anirban Chowdhury/Economic Times
