SpiceJet's Financial Turbulence

05:00

Good morning. I'm Rajesh Kumar, a Senior Partner in our Aviation practice. Today we'll be discussing SpiceJet, one of India's leading low-cost carriers.

Company Overview

Fleet Size

91 Aircraft

↓ 15% YoY

Market Share

8.3%

↓ 4.2pp YoY

Total Debt

₹8,437 Cr

↑ 23% YoY

Cash Burn Rate

₹185 Cr/month

Last 6 months avg

The Situation

SpiceJet is facing severe financial distress with mounting debt, aircraft groundings due to unpaid lease obligations, and declining market share. The Board has hired us to develop an immediate turnaround strategy to ensure survival and return to profitability within 18 months.

Please select your initial framework for approaching this case:

Financial Restructuring Framework

• Debt restructuring & refinancing
• Working capital optimization
• Asset monetization
• Cost reduction initiatives

Comprehensive Turnaround Framework

• Immediate liquidity management
• Operational excellence
• Revenue optimization
• Strategic repositioning

Crisis Management Framework

• Stakeholder management
• Cash preservation
• Core business focus
• Quick wins identification

SpiceJet’s Financial Turbulence and Survival Strategy

SpiceJet Case Study