Third CEO to leave in five years

News of the resignation of Neil Mills, CEO of low-cost airline SpiceJet, took the industry by surprise as his departure comes 18 months ahead of the end of his contract in 2015. He joined SpiceJet as CEO in 2010 and is the third CEO for the Chennai-based private carrier in the past five years. If one were to believe the market buzz, the promoters were upset with the poor earnings in the last fiscal when SpiceJet reported a loss of Rs.1.91 billion, which has been blamed on the cheap ticket scheme Mills offered in January. Over the last three years, the promoters have pumped Rs.3.5 billion into SpiceJet, which has lost Rs.7.96 billion to date. SpiceJet, which started operations in 2005, has a market share of about 20% as opposed to rival IndiGo’s 30%. The Kalanithi Maran-owned airline is believed to be planning to raise funds, including through strategic investors, to cope with increased competition. Foreign airlines can now invest in Indian ones following a change in aviation policy in September last year. Consulting firm Centre for Aviation has said that at least three Indian carriers, including Jet Airways could be potential investment targets and see an infusion of $1.3 billion in equity. Jet’s expat CEO Nikos Kardassis resigned at the end of a five-year stint last month after the company announced investments from Etihad Airways that are yet to be cleared.