SpiceJet’s plane order underlines renaissance
Just 2 years ago, SpiceJet was on the brink of collapse. The airline looked on course to become the second in India to fail in as many years, after a cash crunch left it unable to pay even for fuel. But this month the carrier took a major step in its resurrection with a US$22b order for up to 205 new planes from Boeing — one of the country’s largest-ever deals for new aircraft. Ajay Singh, the airline’s founder, who stepped in to save SpiceJet in Dec 2014, says the order marks the “end of the era of turnaround” and the “beginning of a growth story” after a painful rebirth. But with fuel costs set to rise and competition fierce for cost-conscious passengers in India, analysts are sceptical about how the company will finance its growth. “Passenger growth is not enough to drive revenues" says one aviation analyst. <br/>
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SpiceJet’s plane order underlines renaissance
Just 2 years ago, SpiceJet was on the brink of collapse. The airline looked on course to become the second in India to fail in as many years, after a cash crunch left it unable to pay even for fuel. But this month the carrier took a major step in its resurrection with a US$22b order for up to 205 new planes from Boeing — one of the country’s largest-ever deals for new aircraft. Ajay Singh, the airline’s founder, who stepped in to save SpiceJet in Dec 2014, says the order marks the “end of the era of turnaround” and the “beginning of a growth story” after a painful rebirth. But with fuel costs set to rise and competition fierce for cost-conscious passengers in India, analysts are sceptical about how the company will finance its growth. “Passenger growth is not enough to drive revenues" says one aviation analyst. <br/>
