Indian airline boss prospers in pandemic by pivoting to healthcare

Indian airline tycoon Ajay Singh had little experience in healthcare but last November, as the country was being pummelled by coronavirus, he suddenly branched out into Covid-19 testing and later genomic sequencing. Known for his close connections with Narendra Modi, India’s prime minister — he is credited with coining the 2014 election slogan “This time, Modi’s government” — Singh launched SpiceHealth, vowing to make tests cheaper, faster and more available. Within months, the group had extended its reach across the country, even providing the testing in April for some of the millions of pilgrims who joined the annual Kumbh Mela, the country’s biggest religious gathering that was later seen as a superspreader event. Singh’s rapid pivot from the lossmaking airline sector into healthcare underscores how some of India’s biggest tycoons have managed to prosper, even during the pandemic. Even before the latest outbreak, SpiceJet, in which Singh has a 60% stake, was reeling from a national lockdown last year. The airline reported losses in the past four quarters and has deferred the salaries of some staff for weeks. In February, its auditors Walker Chandiok & Co said there was “material uncertainty” over SpiceJet’s ability to continue as a going concern. Its losses would have been even wider had it not included expected compensation from Boeing for the grounding of 737 Max aircraft. “We can’t understand how they are staying alive,” said an executive at a rival airline. Jitender Bhargava, former executive director of Air India, praised Singh for his management of SpiceJet, rescuing it seven years ago when it was nearly bankrupt and moving quickly to snap up the aircraft of rival Jet Airways after it collapsed in 2019. “He has done well, but as far as the finances are concerned, few airlines have cash reserves. How long can one sustain with the second wave we’ve had?” said Bhargava.<br/>