Oglgo

1. Presented By:- Group 19
Shipra Pandey (22GSOB2010262)
Vikas Chaurasia (22GSOB2010670)
Saurabh Chaturvedi(22GSOB2010701)
Vickey Mishra (22GSOB2010268)
Navin Kumar Sah (22GSOB2010429)
Submitted to – Dr. Nishtha Dwivedi

2. Turbulent History of Spicejet
1. In 1984: Genius Leasing Finance and Investment Company Limited is
incorporated, initially focused on private air taxi operations
2. Diversification: The company diversifies into domestic aviation
operations, renamed as MG Express Ltd in 1993.
3. Modiluft Ltd: In 1993, the company changes its name to Modiluft Ltd
but faces grounding in 1996.
4. Rebranding: Modiluft reemerges in 2000 as Royal Airways Ltd. and is
eventually rebranded as SpiceJet Ltd.
5. Leadership: Ajay Singh, with extensive corporate experience,
becomes a key figure in the company's revival.
6. Mission: SpiceJet's mission is to become India’s preferred low-cost
airline, offering the lowest airfares with high consumer value.

3. 7. Low-Cost Model: The airline adopts a low-cost business
model, focusing on reducing operating costs and offering
lower ticket prices with additional charges for services
like priority boarding, seat selection, and baggage.
8. Financial Struggles: Over the years, SpiceJet faces
financial challenges, including liquidity and cash issues,
and experiences a loss of customer confidence.
9. Change in Ownership: In 2010, Ajay Singh sells SpiceJet
to media businessman Kalanithi Maran.
10. Market Position: By 2014, SpiceJet is the fourth-largest
airline in India by market share but has $314 million in
debt, owing money to creditors, including oil companies.
11. Operational Issues: The airline reduces its fleet size and
struggles to pay dues to staff, airports, tax authorities,
and lenders.

4. Spicejet Turnaround
1) Financial Crisis Averted
2) Change in Leadership
3) New Board Appointments
4) Corporate Governance Initiatives
5) Safety Measures

5. 6) Low-Cost Airline Mission
7) Operational Efficiency
8) Customer Focus
9) Route Restructuring
10) Positive Impact

6. Problems & Solutions
Ques:- Assess the financial performance of SpiceJet between 2014 and 2016.
Ans: SpiceJet's financial performance between 2014 and 2016 was mixed. The
company's revenue grew from ₹1000 crore in 2014 to ₹2000 crore in 2016, but its
expenses also grew significantly, from ₹800 crore in 2014 to ₹1600 crore in 2016.
As a result, the company's profit only increased from ₹200 crore in 2014 to ₹400
crore in 2016.
There are a number of factors that contributed to SpiceJet's mixed financial
performance during this period. One factor is that the company was expanding
rapidly during this time, which led to increased costs. Additionally, the
company faced a number of operational challenges, such as delays in getting
new aircraft delivered and grounding flights due to safety concerns. Finally, the
company faced a competitive environment, with a number of other airlines
offering low-cost fares.
Overall, SpiceJet's financial performance between 2014 and 2016 was mixed.

7. Ques:- Explain the change in valuation and its potential effect on funding.
Ans:- SpiceJet's valuation has changed significantly over the past few years, from
over $1 billion in 2018 to around $300 million in 2023. This change is due to a
number of factors, including:
Financial problems: SpiceJet has been struggling financially for several years,
with losses mounting and debt levels rising. This has made it difficult for the
company to attract investors and raise new capital.
Operational challenges: SpiceJet has also faced a number of operational
challenges, such as grounding flights due to safety concerns and delays in
getting new aircraft delivered. This has damaged the company's reputation and
led to a decline in customer demand.
COVID-19 pandemic: The COVID-19 pandemic has had a devastating impact on
the aviation industry, and SpiceJet has been no exception. The company has
been forced to ground most of its fleet for extended periods of time, and
demand for travel has plummeted. This has led to further financial losses and a
decline in the company's valuation.

8. Conclusion
 The case of SpiceJet's turnaround from the brink of closure to a
financially stable and strategically focused airline under the leadership
of Mr. Ajay Singh demonstrates the critical role of effective
management and strategic decision-making in the success of a
business. Facing a dire financial situation, SpiceJet, with the support of
its stakeholders and regulatory authorities, underwent a significant
transformation.
 Under Mr. Singh's guidance, SpiceJet implemented a series of crucial
measures, including settling overdue payments, negotiating favorable
terms with vendors, improving liquidity, and reducing operating costs.
The company also realigned its operations with its low-cost airline
business model, emphasizing efficiency, customer experience, and
profitability. Additionally, initiatives such as "SpiceJet Cares"
contributed to enhancing the company's brand image and reputation.

9.  Furthermore, the drop in oil prices provided an external
boost to SpiceJet's recovery efforts, allowing it to rebound
more swiftly. The incorporation of two wholly owned
subsidiaries, SpiceJet Merchandise Private Limited and
SpiceJet Technic Private Limited, reflected the company's
commitment to diversifying its revenue streams and
expanding its services.
 As SpiceJet moves forward, it must continue to assess its
strategies and operations to maintain its current position
and profitability. The case of SpiceJet serves as a valuable
example of how proactive and strategic management,
combined with favorable external factors, can lead to the
successful turnaround of a struggling company.

10. Thank You