Sanjiv Kapoor resigned as Chief Operating Officer (COO) of SpiceJet on Thursday after a tumultuous two-year spell, during which the airline was marked by financial losses, change of ownership and the subsequent return to a profitable business.
Kapoor joined SpiceJet in October 2013 after stints in GMG Airlines of Bangladesh and consultancy firms. At the time, the airline was controlled by Kalanithi Maran-promoted Sun Group and though not in financial distress, it was looking for investors. Under Kapoor, the airline launched a series of flash sales, branding and marketing campaigns aimed at increasing the airline’s profile.
These measures also helped the airline increase its load factor and market share, besides reducing losses.
After Maran exited SpiceJet due to a severe cash crunch last December — when the airline flirted with closure — by transferring ownership to Ajay Singh, a co-founder of the airline, he retreated to a supporting role.
SpiceJet had reported a second consecutive profitable quarter during the April-June period as the airline managed to increase seat occupancy.
The airline reported a net profit of Rs 71.84 crore for the first quarter ended June compared to a loss of Rs 124.10 crore in the year-ago period. The airline had swung to profit in the preceding quarter, after six straight quarters of losses.
The airline, which briefly grounded its fleet on 17 December because of financial issues, reported a revenue of Rs 1,106.30 crore for the reporting quarter against Rs 1,678.58 crore in the year earlier.
When contacted, Kapoor did not offer any comment. SpiceJet spokesperson also declined to comment.
SpiceJet also does not have a chief executive officer ever since July 2013 when the then CEO Neil Mills quit the airline.
(With inputs from PTI)
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