Edition 66
SpiceJet this week successfully closed its Qualified Institutional Placement (QIP) for INR 3000 crore, that’s the number you can see in the header of this article. It set out a chain reaction, starting with salary dues being paid, followed by GST being paid. Unlike the previous instance, this time around there are some marquee names which have put in funds. It remains a mystery on what the funds saw in an airline which seemed on its last legs but the infusion is the much deserved good news in the world of aviation.
This will set a good chain reaction, employees, airports, government authorities, vendors where the payment before the holiday season will drive business. While it is time to celebrate, it is time to look for some senior management who can take the airline to the next level. The initial days is about the euphoria, but once things settle down – let’s hope the airline has razor sharp focus on what it wants to achieve, starting with possibly a cost leadership. It is at a cusp where it can compete with lower costs.
As the quintessential tagline of surf excel says “Daag Acche hai” (Stains are good), it is true for airlines in India right now – More the merrier, lest we are left with a duopoly which is increasingly looking cumbersome on the service aspects, leave aside the costs.
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