Will the former SpiceJet CEO re-create the same magic in the debt-struck Kingfisher too?
Private air-carrier Kingfisher Airlines on Thursday said that it has appointed Sanjay Aggarwal as its CEO. The appointment is with immediate effect.
“We have appointed Sanjay Aggarwal as our (Kingfisher Airlines) CEO with immediate effect,” an airline spokesperson said.
Mr. Aggarwal is the former CEO of SpiceJet, another private air-carrier.
He is credited with steering SpiceJet into profits in FY’10, the first time since its inception in 2005. Mr. Aggarwal quit the airline in July this year after media baron Kalanithi Maran bought a 37.7 per cent stake from U.S. investor Wilbur Ross. Mr. Maran is now gearing up to make an open offer for acquiring 20 per cent additional equity.
According to airline industry observers, Mr. Aggarwal will have the tough task of turning around the bleeding Kingfisher Airlines.
As of March, 2010, the air-carrier’s debt stood at Rs 6,000 crore, the largest for any domestic private air-carrier. It had posted a loss of Rs 1,647 crore in FY’10.