Calculated risks could see SpiceJet beat covid

SpiceJet co-founder Ajay Singh has the challenging task of ensuring that the no-frills airline conserves cash, even as he renegotiates contracts, recapitalizes its balance sheet, and bags all possible revenue opportunities to emerge from the crisis caused by the covid-19 pandemic.

The pandemic has spelt doom for the aviation sector globally, but SpiceJet appears to be more burdened than many other airlines. Last month, the carrier’s statutory auditors, S.R. Batliboi and Associates Llp, raised doubts about the company’s ability to continue as a going concern as the no-frills airline reported its highest ever quarterly loss during the March quarter at ₹807.07 crore.

SpiceJet’s challenges started with delays in the delivery of Boeing 737 MAX planes, which impacted the airline’s profitability, said Kapil Kaul, South Asia chief executive officer of CAPA-Centre for Aviation, an aviation consultancy firm.