On the seventeenth day of December 2014, a near bankrupt SpiceJet ceased operations till 1600 hours. Flights resumed only after oil companies started refuelling after the airline made a part payment on outstanding dues.
Part payment was one of the reasons the airline took wings again. The other crucial reason for SpiceJet's return from death was the return of original founder Ajay Singh, who was seen meeting officials at the Rajiv Gandhi Bhawan - the building that hosts the civil aviation ministry in Delhi - an hour before flights resumed. Singh, who had co-founded SpiceJet in 2005, had sold a majority stake in the airline to Kalanithi Maran of Sun TV in SpiceJet for Rs 750 crore in 2010. But when SpiceJet ran into rough weather, Singh acquired 58 per cent equity from Maran in January 2015.
That near-death experience is now well behind SpiceJet. It has since registered profits for all four ensuing quarters with cumulative profits of Rs 356 crore.
Its liabilities have fallen to Rs 700 crore from January last year; it was about Rs 1,500 crore according to a submission made to the aviation ministry by SpiceJet.
25/02/16 Mihir Mishra/Economic Times
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Part payment was one of the reasons the airline took wings again. The other crucial reason for SpiceJet's return from death was the return of original founder Ajay Singh, who was seen meeting officials at the Rajiv Gandhi Bhawan - the building that hosts the civil aviation ministry in Delhi - an hour before flights resumed. Singh, who had co-founded SpiceJet in 2005, had sold a majority stake in the airline to Kalanithi Maran of Sun TV in SpiceJet for Rs 750 crore in 2010. But when SpiceJet ran into rough weather, Singh acquired 58 per cent equity from Maran in January 2015.
That near-death experience is now well behind SpiceJet. It has since registered profits for all four ensuing quarters with cumulative profits of Rs 356 crore.
Its liabilities have fallen to Rs 700 crore from January last year; it was about Rs 1,500 crore according to a submission made to the aviation ministry by SpiceJet.
25/02/16 Mihir Mishra/Economic Times
