In what is sure to be a shock, to both the BIAL and HIAL consortia, the Deccan Chronicale reports, the parliamentary standing committee on transport, tourism and culture, on Thursday October 23, recommended immediate withdrawal of user development fees (UDF) being charged by Hyderabad and Bengaluru airports.

It said the private operators had invested only Rs 330 crore and Rs 240 crore at Hyderabad and Bangalore respectively to develop the airports. The rest of the amount came from the AAI, state governments and through debt from financial institutions.

Observing that the government’s policy was to make air travel more affordable, the committee said the UDF imposed on passengers “may be withdrawn immediately and no more UDF may be imposed on passengers in any of the airports.”

The committee has also recommended that the HAL airport in Bangalore, and the Begumpet airport in Hyderabad be used for short-haul domestic flights.

The committee, headed by the CPI(M) leader, Mr Sitaram Yechury, said any future greenfield or brownfield airports should be developed with the Airports Authority of India (AAI) having a majority stake in a joint venture.

What impact this recommendation will have on the pending UDF requests of the consortia at Delhi and Mumbai is also to be considered.

SpiceJet is sure going to win the hearts of the Rajasthani community, and major businesses like Bosch India, with its new Bangalore - Jaipur direct flight.

Starting October 26, 2008, SpiceJet schedule will offer a B737 morning departure, same day evening return.

SG284 depart Bangalore 08:45 arrival Jaipur 11:30.
SG283 depart Jaipur 17:15 arrival Bangalore 20:00.

At a ceremony at New York’s Public Library recently, Condé Nast Traveler one of the world’s leading high end travel magazine, announced that Jet Airways has been selected as one of the top three airlines in the world in its 2008 Readers Choice Awards survey. Congratulations to the team at Jet.

Jet Airways, India’s leading international airline, launched North American service last summer from Mumbai/Delhi to New York’s JFK and Newark airports – adding Toronto Pearson International and San Francisco International airports within the past year. Jet Airways connects Bangalore to JFK and Toronto via a daily Brussels flight.

At the same time, Jet Airways has announced the introduction of attractive eight and fifteen-day apex fares on key domestic routes.

The new fares are applicable for sale and travel with immediate effect, and can be applied on both return and one-way journeys.

Reservations may be made through Jet Airways’ offices across India or through travel agents.

Passengers travelling on these routes may also earn 20% of base JPMiles when they avail of the Apex fares.

The Bill for setting up the Airport Economic Regulatory Authority (AERA) was passed by the Lok Sabha on 22-Oct-08.

The prime objective of AERA will be to create a level playing field and foster healthy competition among all major airports (Government owned, Public Private Partnership based, Private) encourage investment in airport facilities regulate tariffs of aeronautical services, protection of reasonable interest of users, operate efficient, economic and viable airports at notified airports.

The Authority shall consist of a Chairperson and 2 persons to be appointed by the Central Government from amongst persons having adequate knowledge and professional expertise in aviation, economic law, commerce or consumer affairs. The member shall be whole time appointees.

Whenever the Authority is deciding a matter involving a civil enclave in a Defence airfield, the Defence Ministry will be represented by an additional member on the Authority who will be nominated by the Ministry of Defence.

The Authority shall determine tariff once in 5 years and may, if it considers appropriate in public interest amend, the tariff from time to time during the 5 years.

The AERA Bill was introduced in Lok Sabha on 05-Sep-07. It was, thereafter, referred for the consideration of the Department Related Parliamentary Standing Committee on Transport, Tourism and Culture.

The Standing Committee examined the AERA Bill in consultation with the stakeholders and presented its report to the Parliament on 17- Apr-08. The Committee had made some recommendations most of which were introduced to the Bill.

The Bill will now be introduced in Rajya Sabha.

For more details on AERA functions please read my previous article

CNN-IBN reports that airlines will pay all outstanding dues on aviation fuel to oil companies in six monthly installments and will be given a credit limit of 90 days to purchase the current requirement of aviation turbine fuel (ATF), it was decided in the national capital on Wednesday.

The decision was taken at a meeting of heads of various airlines and oil companies and presided over by Civil Aviation Minister Praful Patel and Petroleum Minister Murli Deora to discuss payment of dues to oil companies.

"Cumulatively, the dues of the airlines industry to the oil companies are about Rs.2,500-2,800 crore (Rs.25-28 billion). We have decided that this shall be cleared by the airlines in six-monthly instalments by March 2009," Patel told reporters after the meeting.

He added that for current uplift of ATF, oil companies will extend to all airlines a credit limit of 90 days; besides, oil companies will start revising ATF prices every fortnight, replacing the current monthly revision.

Kingfisher Airlines chairman and CEO Vijay Mallya, Jet Airways executive director S.K. Dutta and Air India chairman Raghu Menon were amongst those present. So were the chiefs of state-run oil firms Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum.

The meeting was necessitated as some airlines have defaulted on payments for the ATF they have bought at the end of their 60-day credit period.

Patel also said he had "cautioned" airlines that they would have to take more responsibility if they wanted support.

With the theme – “You’ve earned it”, Star Alliance launched its new multi-platform brand campaign on Monday, October 20th, 2008. The campaign is aimed at increasing awareness and familiarity of the Alliance customer benefits, with a special emphasis on the value of global recognition for the frequent International traveller.

“Working away from home on international business trips can take its toll on the global frequent traveller, and the potential rewards for such travel are often simply not clear enough. Star Alliance was the first international airline alliance specifically set up with the frequent international traveller in mind, created to focus on the development of rewards, products and services aimed at providing hassle-free multi-airline, multi-destination travel,” said Mark Davies, Director of Marketing Communications for Star Alliance.

The campaign is supported by a series of short documentaries called “A Meeting of Minds”, produced in association with CNBC International, where budding entrepreneurs interview global business leaders on the art of doing business better, especially in emerging markets, and how these business leaders have taken their businesses from local to international.

One of the episodes shows entrepreneur Anthony Pereira, founder of U.S. renewable energy company, AltPower, meeting Simon Woodroffe, founder of Yo@ Company Holdings, which created Yo! Sushi and Yo! Hotel. All 10 episodes are lively, fast moving and show business leaders in London, New York, Beijing and Shanghai. These short films are available for viewing at www.staralliance.com.

“Being recognised as a special person across the alliance is not an easy logistical task to achieve, yet with more than 11 years of experience in this field, we know we’re best placed to be at the forefront of this global challenge. Through this campaign, we are aiming simply to remind our core international audience of the benefits we’re spearheading for the industry, including alliance-wide priority baggage; Connection Centres at our major hubs and Alliance lounges to name but a few. After all, our frequent international travellers have truly earned it!,” added Davies.

Complementing the campaign, Star Alliance has also developed an international business etiquette guide to recognise the importance of different cultures when doing business around the world. This has been produced in association with international magazine Monocle.

The campaign was designed, together with advertising agency Touch DDB, to highlight the fact that Star Alliance products, services and rewards were developed to help customers alleviate the stress of travel.

The multi-platform media campaign, developed with media agency MEC, has advertisements on targeted news, business and travel websites that direct visitors to a video landing page on our Alliance website. The campaign will also run in Star Alliance’s 21 member carriers’ in-flight magazines, on entertainment channels and in posters at London-Heathrow and Paris-Charles de Gaulle airports.

Kingfisher Airlines Chairman, Dr. Vijay Mallya, in an interview with Ashwini Phadnis of the Hindu Business Line claims it is "Taxes, not over-capacity, that is killing the Indian civil aviation sector".

The business logic to Dr. Mallya's statement is to reduce fares by reducing the ridiculous taxation structure on Aviation Turbine Fuel (ATF), which ensures ATF in India is almost double the international prices. Regardless of product, India is an extremely price sensitive market, and lower fares will bring the passengers back to the skies from the trains and buses.

While I agree with Dr. Mallya on the over-taxation, I talk his claims on over-capacity and taxes being the sole reason for the failure, with a big pinch of salt. Airlines were well aware of the tax structure before entering the market. I am surprised at the lack of planning and lack of risk analysis.

Over the last two months, despite reduction in ATF prices (thanks to lower global crude prices), all airlines have taken the benefit in to their books, rather than passing it to the consumer. It is natural for both government and public to be sceptical.

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I have not asked for a bailout or financial relief: Vijay Mallya.

As far as Kingfisher is concerned we do not sell at a loss. Jet Airways, over the last six months, their conduct shows that they too will not sell at a loss. There are other guys in the industry who will happily sell at a loss.

For the Chairman of Kingfisher Airlines, Mr Vijay Mallya, it is not over-capacity in the domestic market place, but the high taxation levels in the country that is killing the domestic aviation.

At a meeting with Business Line at the Business Centre of Taj Palace hotel as he rushed for four back-to-back board meetings, Mr Mallya outlined what he felt were the problems facing the industry.

Excerpts:

There is a rumour that you have asked Accenture to look at downsizing staff in your airlines.
We do not have surplus staff. Accenture was specifically hired to do merger strategy and merger synergy identification with Air Deccan. All this has been completed and we have actually realised Rs 300 crore out of the Rs 375 crore spent on synergies.

You are said to have met with senior opposition leaders and also Mr Sharad Pawar to seek a bailout of financial help for the aviation sector?
I have not meet a single opposition leader. Yes I did visit Parliament. But this was the first trip after leaving Parliament. As a former MP, I can visit the Central Hall (of Parliament) for life. I met several people but that does not mean I am lobbying.

I have not asked for a bailout or financial relief. All I have said that if States continue to charge sales tax on aviation turbine fuel (ATF) the aviation industry is not viable.

On Monday, you were quoted as saying that there will be more job cuts in the industry?
This is not correct. I was asked a question as to whether I was disappointed at the reaction of the Government towards the crisis facing the sector.

My response was that the Government should express urgency in considering the request of the aviation industry. However, they have other natural priorities. I hope our turn comes quickly. But I have not met with either the Finance or Petroleum Minister, although I made a presentation to the Prime Minister. I have not asked for a bailout or a single farthing from the Government.

It is the tax which is killing the aviation industry. I said that if you want to charge this kind of sales tax then this industry is not viable.

As far as Kingfisher is concerned we do not sell at a loss. Jet Airways, over the last six months, their conduct shows that they too will not sell at a loss. There are other guys in the industry who will happily sell at a loss.

So what has happened, we have raised the prices and this is because of the fuel surcharge, that is why traffic has slowed down. So if you analyse the cost structure it is the tax (which is affecting the airline industry).

What is the way forward? Given the fact that this is election year.
Why can people not understand that even in an election year, the airline industry is as important as any other industry. Can you imagine what will happen if the entire airline industry of India gets grounded and Air India has to manage on its own.

So, is the negative impact of elections worse or recognition that there is over-taxation? Anywhere in the world there is not such high sales tax (on ATF).

The fact of the mater is if the aviation industry has problems there is no point in making this big drama about tax-payers money. There is no point making a big drama about bailout.

All we are saying is stop fleecing us. We pay 70 per cent more for fuel than Singapore and Dubai. Is that fair?

We provide vital connectivity; any fellow who suggests that air traffic connectivity is not essential needs to have his head examined.

The second point I will like to say is history. Aviation is a substantial element of national security. If tomorrow there is a conflict and Indian Air Force does not have enough planes to transport troops and materials, Government will commandeer all civilian aircraft.

It is a very important sector, aviation. Everyone just wants to slam it. May be sometime if the airlines actually get grounded, the people will realise how important they are.

How long can this (high prices of ATF) go on?
We will all dramatically reduce our flights.

By when?
We do not operate like others. Saying if not done by this date then we will cut flights. We are not going on strike. We are merely saying that we cannot operate and pay these kind of tax. So either get real or you will see a complete slowdown or we will keep on chopping flights and grounding planes.

There is said to be 20-30 per cent over-capacity in the market
It is not over-capacity. Where are you getting all these leads from? Over-capacity! Do you know what is demand and how many planes are required? Neither you nor I know. We have seen a growth trajectory of 32 per cent CAGR over the last three years.

We are not talking about capacity. But we are talking about the fact that we are flying aeroplanes and losing money. Because of the tax. If the tax is not solved we will not fly to provide transportation at a loss and let Government get rich.

Let us say that on an average the price of oil was $40 a barrel. The Government said they will charge a 30 per cent tax. So in their State revenue budget it is accounted as budgeted revenue by this date from ATF. The same ATF went to $140 they collected $52. A windfall for the States.

All I am saying is collect the $12. They are not entitled to collect the difference. That is what we want simple and straight forward.

The bad news just does not stop for the domestic Indian civil aviation industry.

Recently released figures show an alarming drop to only 8.6 million domestic passengers for the third quarter of (July-September) 2008, with a miserable 2.68 million passengers for September 2008. This represents a 17% reduction over the same period last year, a 19% reduction from the previous month, and whopping 25% drop from the preceding quarter. Compare this with 33% annual growth in the previous three years.

Most industry experts attribute this drop due to the 25-30% reduction in capacity by airlines, and the 10-15% increase in fares.

Jet group (Jet Airways and JetLite) are still the dominant force in the industry, and with their new found ally the Kingfisher group (Kingfisher and Deccan) control almost 60% of the market.

Despite the deep cuts, flight load factors continue to drop. Experts feel there is an excess capacity of 20% or about 300 flights, which need to be cut, before the demand-supply balance is reached. This is evidenced by the sharp capacity rationalisation undertaken by Kingfisher Red (formerly Simplifly Deccan), which helped the airline raise its load factors from a miserable 39% in August to a more respectable 51.7% in September.

While all airlines have been witnessing a drop in traffic from the beginning of this year, the Kingfisher group shows a sharp decline of over 30% from the first quarter (Jan-Mar) of 2008 to the third quarter (Jul-Sep) of 2008.

The "perfect storm" of collapsing demand, increasing costs, and a global financial meltdown, has truly let loose its fury on the Indian domestic civil aviation industry. The FUD factor (Fear, Uncertainty, Doubt) is further curtailing traffic as India Inc., rushes to save costs. There is no doubt on the severity of the impact. The blame lies squarely with the airlines who followed a herd mentality and blindly rushed in to buying capacity, while growth was at 33% a year.

The airlines may not have had a plan to deal with 33% declines, but without a doubt, they need immediate rationalisation of the insane Aviation Turbine Fuel (ATF) taxation structure, that is killing the Indian civil aviation industry. It is time Mr. Murli Deora and Mr. P. Chidambaram start listening to the pleas of their cabinet colleague Mr. Praful Patel.

ATF price rationalisation may not solve all the problems, but at least, it is a start.

The consolidation in the Indian aviation industry has commenced.

Jet Airways announced, today, it has entered into a codeshare arrangement with JetLite, its wholly-owned, all economy subsidiary as part of its ongoing efforts to offer passengers synergetic benefits when they choose to fly with the Jet group.

As part of the agreement, Jet Airways will place its marketing code (9W) on key domestic routes operated by JetLite (S2), enabling both carriers to offer passengers better connections and a wider network.

Jet Airways’ JetPrivilege members travelling on these codeshare flights* can avail of a range of JP benefits, including the accrual of JPMiles based on class of travel. Moreover, the JPMiles thus earned will be Status JPMiles, and these JPMiles as well as each codeshare flight will also count toward JetPrivilege tier upgrade/ retention. JPMembers will also earn Tier Bonus JPMiles and Online booking bonus for the codeshare flights booked on the Jet Airways website.

Jet Airways Citibank Co-brand Credit Cardholders can use their companion discount vouchers on codeshare routes on applicable booking classes. Exclusively for Platinum members, there will be a waiver of cancellation charges on all these codeshare flights.*

Commenting on the codeshare, Mr. Wolfgang Prock-Schauer, Chief Executive Officer, Jet Airways said, “The codeshare agreement with JetLite will enable both carriers to optimally leverage their respective networks, offering passengers enhanced online connectivity across more than fifty domestic and international markets.”

Mr. Daniel Barranger, Vice President-Sales, JetLite added, “Besides offering passengers seamless connectivity and additional same-day return possibilities on several domestic sectors, this agreement is an important step forward in achieving further revenue synergies between the two carriers, both leaders in their respective market niches.”

Additional codeshare services between the two airlines will be implemented in phases.

*Conditions apply. Please refer to www.jetairways.com for more details

The tumultuous last week in the Indian aviation scenario, which rivalled the best soap opera dramas of Bollywood, Tollywood or Sandalwood, shows no signs of abating.

The popular joke of the day is "Who says there is a CREDIT crunch in India? See all the politicians taking CREDIT" [for 'protecting' the jobs of the Jet Airways staff].

The fight between Petroleum minister Murli Deora and Civil Aviation minister Praful Patel, both from Mumbai, spilt out in the open, with the Oil ministry charging airlines with default, and Patel defending the 'defaulter' airlines.

According to Press Trust of India (PTI) report, Civil Aviation Minister Praful Patel recently defended delays by airline companies in making payment of their fuel bills saying they were not defaulters, but the Petroleum Ministry maintained that Jet Airways had defaulted on payment of Rs 259 crore to Indian Oil Corporation (IOC). Rs. 100 Crore = Rs. 1,000 million = $20 million.

After Petroleum Ministry gave details about the dues of Jet Airways and its new found ally Kingfisher Airlines, Patel told reporters in the Parliament that the airline had a 60-day period to make payments. “So they cannot be branded as defaulters,” said Patel. However the Petroleum Ministry countered Patel by saying that Jet had failed to make payments even after expiry of the 60-day grace period. Jet's total outstanding to IOC stood at Rs 859 crore, of which it had defaulted on payment of Rs 259 crore bills, which were due on September 25 and October 5 this year after the expiry of 60-day period, said a senior official.

Similarly, Kingfisher owed Rs 110 crore to IOC, of which Rs 60 crore remained unpaid after expiry of the credit period. Jet also owes Rs 284.3 crore to Bharat Petroleum Corporation Limited (BPCL) while Kingfisher owes Rs 246 crore to BPCL and Rs 525 crore to Hindustan Petroleum Corporation Limited (HPCL). The official further said, “It is not correct to say that we are terming them defaulters just like that. We said they were defaulters because they failed to make payments even after 60-day credit period.”

Petroleum Minister Murli Deora had personally brokered the 60-day credit deal between Naresh Goyal’s Jet Airways and Sarthak Behuria, Chairman, IOC. Deora said last week that he was hurt when Goyal did not keep his word on making timely payments.

The official said both Jet Airways and Kingfisher Airlines had to clear their outstanding at the earliest as state-run oil firms themselves were in difficult times. “Our companies have a social obligation to fulfil. They sell subsidised cooking gas to households and even more subsidised kerosene to the poor. They have been living on borrowed funds and need funds to keep these subsidised sales going," said the official. IOC, BPCL and HPCL together lose about Rs 280 crore on sale of petrol, diesel, domestic LPG and kerosene. “Do you now expect them to sell subsidised fuel to the rich travelling by air?” he said. {This statement reflects the demented thinking of the ultra-smart people, so often found in Government, I have been raving about. Please see my article on how the populist fuel policy of the Indian government is killing Indian aviation.}

The completely lopsided, and vote-grabbing, populist mindset, of both, the Union and various State governments, have left the Government controlled oil companies in shambles. The three companies have not received oil bonds, which are used to compensate for half of the losses they make on fuel sales, for past three quarters. The combined borrowings of the three, which stood at Rs 48,400 crore in March 2007 and Rs 66,900 crore in March 2008, has increased to Rs 1,10,000 crore ($2.2 billion) as of this month. The oil companies are forced by the governments, to lose, Rs 2.85 a litre on petrol, Rs 7.26 a litre on diesel, Rs 29.19 a litre on kerosene and Rs 335.03 per cylinder on domestic cooking gas. The companies are projected to lose Rs 1,47,592 crore ($3 billion) in revenues this fiscal.

The official further informed that Aviation turbine Fuel (ATF) was priced at import parity rates (as if the fuel were to be imported) because around 80 per cent of the crude oil used to make the fuel was imported at international rates. Pricing of ATF was de-regulated on April 1, 2001 and since then it has been governed by fluctuations in the global market. Over the base price, customs duty of five per cent, eight per cent excise duty, three per cent education cess and sales tax at an average of 25 per cent is levied. State taxes and excise duty amounts to about a third of the ATF price.

In the meantime, PTI also reports, Jet Airways Chairman, Mr. Naresh Goyal, met with Finance Minister P Chidambaram to seek tax concessions on aviation turbine fuel as part of measures to overcome the crisis that has hit the Indian civil aviation sector.

According to sources, Goyal met Chidambaram at North Block this morning and drew attention of the finance minister to the problems that airlines in the country were facing. Goyal is understood to have asked Chidambaram to consider the demand of airlines to rationalise taxation and levies on ATF, which has become one of the biggest issues of carriers in India.

It is a known fact, that Mr. Chidambaram does not have any maneuvering room, given the raft of populist measures taken during this financial year, keeping in view the upcoming general elections.

In true television drama style, keep watching for the next episode.

Madhumathi D.S. of the Hindu Business Line reports that the 5 month young Bengaluru International Airport, which was expected to have a dream take-off on the back of phenomenal traffic growth during 2005-08, now seems to be going slow on its expansion plan in the face of a traffic decline.

“There has been a dramatic fall in monthly traffic for all airports in India since June 2008. We are currently conducting a study on the current trend and based on the results, which will be out in two-three months, we will take a decision on our next expansion plan,” the operator, BIAL, said in response to queries from Business Line.

Until a couple of months ago, BIAL CEO, Mr Albert Brunner, was hoping to take up a mezzanine expansion now and a larger Rs 3,500-crore phase 2 in early 2009 with a second terminal, pending the board’s clearance.

Bangalore's traffic numbers, reflect the overall slowdown across the country. BIAL said, “The overall annual growth of passenger volume [at Bengaluru International Airport] has dropped to 3 per cent since June 2008” compared to an anticipated 8 per cent growth rate.

The Southern sector has been especially dented. “There has been a drop of approximately 15 per cent in the flights operating in the Southern sector (Kochi, Coimbatore, Hyderabad, Chennai) from Bangalore since May 2008. The Mumbai, Kochi, Coimbatore, Delhi, Goa, Hyderabad, Chennai and Pune routes have collectively seen a 12 per cent reduction in the number of flights,” as per BIAL sources.

The dip could also not have come at a worse time than now for BIAL, which is awaiting the Civil Aviation Ministry’s clearance to start collecting a user fee (UDF) from domestic fliers leaving the city. The UDF is one of the main revenue sources for its ambitious expansion plan.

BIAL started collecting a user fee of Rs 1,070 each from its outbound international passengers from the first day of its operations.

The May, June, July period is lean all over India, but traffic has continued declining instead of picking-up in late August and September as it does every year. Clearly the "FUD Factor" (Fear, Uncertainty, Doubt) of the global economic melt-down is having its effect on the psyche of India Inc.

Bangalore’s air traffic, the third highest in the country, was until a few months ago the envy of some other larger cities. BIA opened in May 24, taking over 10.1 million annual passenger traffic from the HAL airport. In fact, the traffic growth was so large and unforeseen – from 4 million in 2005 to over 10.1 million in FY 2007 – that BIAL had to insert two unscheduled expansions into first phase of the project in 2006-07, a move that pushed the project cost from the original Rs 1,400 crore to Rs 2,500 crore.

That happily poised graph has changed its course downwards. Even as BIA completed 100 days in late August, the writing was on the wall. Peak hour traffic did not grow to match the capacity, though BIA handled 2.42 million passengers, on the wing of 30 per cent rise in international airlines and air freight carriers into the city.

From 170 flights per day and 340 air traffic movements (ATMs) when it launched, BIA will now end the Summer ‘08 season with 162 flights (324 ATMs) per day. Winter ‘08 flights would see a small 1.5 per cent gain with 165 flights (or 330 ATMs). According to the operator, “Although the domestic air traffic reflects a [fall] of 1.5 per cent, the overall positive growth is due to the increased international flight operations from Bangalore.”

This is in spite of adding six new international carriers since it began services - Dragon Air, Tiger Airways, Oman Air, Air Mauritius and most recently Kingfisher Airlines and Jet Airways. International flights, BIA said, have increased over 230 per cent year on year for the Winter season.

BIAL said the domestic UDF, once cleared, will be part of the airline ticket cost; the airlines will collect it while issuing tickets, as directed by the Directorate General of Civil Aviation. BIAL plans to set up counters to collect the fee by cash or credit card from those who have booked their tickets in advance but will be flying from the levy date.

UDF has become a double-edged sword for BIAL. They are facing the "Devil's Alternative". Imposition of UDF will have its impact on an already weak aviation scenario, and not imposing UDF, will have disastrous consequences on the finances of BIAL. I do not envy Mr. Brunner's seat at this moment, he has some very delicate balancing to do, and hard choices to make.

All I can offer is my support during these tough times.

SpiceJet today announced the appointment of Sanjay Aggarwal, as Chief Executive Officer (CEO) with immediate effect. Aggarwal takes over the position from Siddhanth Sharma. Prior to his current responsibilities in SpiceJet Aggarwal held the position of Chief Operating Officer and Chief Strategy Officer for Flight Options.

Previously Aggarwal had worked as senior director of Marriott International and had also been Manager of Financial Planning for the maintenance, reservations and internal consulting areas of US Airways.

Commenting on his appointment, Sanjay Aggarwal said, "I believe that SpiceJet is well positioned to grow rapidly as a low cost carrier, and I am delighted to have the opportunity to help the company achieve its potential."

Wilbur Ross, who led the recent $100 million cash infusion program into SpiceJet, added, "Of the many candidates, Sanjay was by far the most impressive. He is precisely the right person to lead the existing highly capable management team in turning SpiceJet around."