At the end of last year, SpiceJet – once India’s second largest airline by market share – was on the verge of shutting shop.
All its aircraft were grounded by December 17. Lessors and debtors were knocking on the company’s doors for repayment; and oil companies refused to refuel any of its aircraft.
The situation was so dire that some predicted the airline was going belly-up, like Kingfisher Airlines, once India’s second largest airline, that shut down business in 2013 after it was unable to repay its debt.
But SpiceJet has survived – and how.
Seven months after that December scare, the airline is India’s fourth largest by market share – it controls 11.6% of the market – and manages to fly at almost 93% of its capacity, the highest for any airline in the country. It currently operates 34 aircraft, flying to 41 destinations and plans to raise its fleet size to 50 by March 2016.
26/07/15 Manu Balachandran,qz.com
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All its aircraft were grounded by December 17. Lessors and debtors were knocking on the company’s doors for repayment; and oil companies refused to refuel any of its aircraft.
The situation was so dire that some predicted the airline was going belly-up, like Kingfisher Airlines, once India’s second largest airline, that shut down business in 2013 after it was unable to repay its debt.
But SpiceJet has survived – and how.
Seven months after that December scare, the airline is India’s fourth largest by market share – it controls 11.6% of the market – and manages to fly at almost 93% of its capacity, the highest for any airline in the country. It currently operates 34 aircraft, flying to 41 destinations and plans to raise its fleet size to 50 by March 2016.
26/07/15 Manu Balachandran,qz.com
