Former SpiceJet chief executive officer Sanjay Aggarwal may join Kingfisher Airlines (KFA) in the same capacity. According to sources in the know, the Vijay Mallya-owned airline is in talks with Aggarwal and an announcement is expected shortly.
“Aggarwal and Vijay Mallya have met and an announcement on the same may come as soon as Thursday,” said a source familiar with the development, on condition of anonymity.
Aggarwal did not respond to several calls and SMSes to him. He joined SpiceJet in October 2008 and is credited for bringing the low-cost airline into profit for the first time since its inception in the previous financial year. He resigned from the airline in July, after Sun TV promoter Kalanithi Maran bought a 37.7 per cent stake in the Gurgaon-based low-cost carrier through a 20 per cent open offer.
It was US-based hedge fund investor Wilbur Ross who brought in Aggarwal after he invested in SpiceJet through foreign currency convertible bonds.
Aggarwal’s job at Kingfisher will not be less challenging and his immediate task would be to turn around the debt-ridden, loss-making airline. Sources said Seabury Aviation & Aerospace, a US firm hired by Kingfisher for advice on restructuring and performance improvement, had advised the airline to hire a CEO.
Kingfisher is running up huge losses and has a huge debt of Rs 7,413 crore (as of December 2009). State Bank of India’s merchant banking arm is working out a restructuring plan. For the financial year ended March 2009, KFA’s net loss was Rs 1,647.2 crore. It further reported a net loss of Rs 187 crore in the first quarter of the current financial year.
