<p>The decision of SpiceJet promoters Kalanidhi Maran and KAL Airways to handover the airline’s ownership to Ajay Singh on Thursday was cheered by experts, who described the move as a welcome development.<br /><br /><br /></p>.<p>“It’s a welcome development. Failure of an airline with 17 per cent market share is the last thing our beleaguered aviation sector needs. SpiceJet’s revival is good for passengers, employees, lenders, suppliers and the industry as a whole,” Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told Deccan Herald.<br /><br />Dubey said that Singh, the original promoter, would have to rework his fleet, network and people strategy. With “excellent slots, brand and staff”, he said, the airline can rebuild itself over the next 8-12 months into a “lean, mean and profitable airline” if given the right support.<br /><br />Referring to government’s help to the airline last month, he said that the government has done well to support SpiceJet’s revival without pumping in any taxpayers’ money.<br /><br />“It should now focus on long-pending systemic changes regarding ATF pricing, MRO taxes and aerospace manufacturing to develop India into a robust aviation power like China,” Dubey said.<br /><br />Kapil Kaul, CEO of aviation think tank Centre for Asia Pacific Aviation (CAPA), said that this is a “big positive” on expected lines. “The first step has been taken, the devil may lie in the details though,” he said. <br /><br />Former Director General of Civil Aviation Kanu Gohain said that the airline will retain its credibility once it is able to settle the debt. An IIT-Delhi alumnus with an MBA degree from Cornell University, Singh is considered a professional, who knows the aviation sector well. Singh himself has acknowledged that the road ahead for SpiceJet is “pretty tough” and expects it would take another two or three quarters for a turnaround.<br /><br />“SpiceJet is in a tough position and the road ahead is pretty hard, but I think the road is worth travelling on,” he told TV channels. “We are confident that we will find the investors and ensure that SpiceJet survives,” he added.<br /><br />At present, he is weighing several options on investment and talking to potential investors, who are doing their due diligence on the company. His lawyers are looking at various aspects of investments. With speculation on whether he would make an open offer, Singh said that he would do so if Sebi asks for it. Singh said that making an open offer would depend on legal advice.</p>
<p>The decision of SpiceJet promoters Kalanidhi Maran and KAL Airways to handover the airline’s ownership to Ajay Singh on Thursday was cheered by experts, who described the move as a welcome development.<br /><br /><br /></p>.<p>“It’s a welcome development. Failure of an airline with 17 per cent market share is the last thing our beleaguered aviation sector needs. SpiceJet’s revival is good for passengers, employees, lenders, suppliers and the industry as a whole,” Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told Deccan Herald.<br /><br />Dubey said that Singh, the original promoter, would have to rework his fleet, network and people strategy. With “excellent slots, brand and staff”, he said, the airline can rebuild itself over the next 8-12 months into a “lean, mean and profitable airline” if given the right support.<br /><br />Referring to government’s help to the airline last month, he said that the government has done well to support SpiceJet’s revival without pumping in any taxpayers’ money.<br /><br />“It should now focus on long-pending systemic changes regarding ATF pricing, MRO taxes and aerospace manufacturing to develop India into a robust aviation power like China,” Dubey said.<br /><br />Kapil Kaul, CEO of aviation think tank Centre for Asia Pacific Aviation (CAPA), said that this is a “big positive” on expected lines. “The first step has been taken, the devil may lie in the details though,” he said. <br /><br />Former Director General of Civil Aviation Kanu Gohain said that the airline will retain its credibility once it is able to settle the debt. An IIT-Delhi alumnus with an MBA degree from Cornell University, Singh is considered a professional, who knows the aviation sector well. Singh himself has acknowledged that the road ahead for SpiceJet is “pretty tough” and expects it would take another two or three quarters for a turnaround.<br /><br />“SpiceJet is in a tough position and the road ahead is pretty hard, but I think the road is worth travelling on,” he told TV channels. “We are confident that we will find the investors and ensure that SpiceJet survives,” he added.<br /><br />At present, he is weighing several options on investment and talking to potential investors, who are doing their due diligence on the company. His lawyers are looking at various aspects of investments. With speculation on whether he would make an open offer, Singh said that he would do so if Sebi asks for it. Singh said that making an open offer would depend on legal advice.</p>
