IIPM NEW-DELHI: ‘Spice’ing up the sky! Way to Go

Friday, March 28, 2008

‘Spice’ing up the sky! Way to Go

Wherever he went, Thiagarajan has either created or broken records, and now he wants to acquire not one but two airlines
Pilot-turned businessman, M. Thiagarajan of Paramount

Airlines is the youngest airline CEO & MD in the world. He was just 27 when Paramount’s first flight took off. But that’s an old story. According to the latest figures of CAPA, Thiagarajan controls 2% market share of the Indian aviation industry. That’s small, isn’t it? Now, suffix a 6 to that figure – 26%, that’s Paramount’s market share in the South which makes it the market leader in that part of the country. However, that is not the only and real reason why he is 4Ps B&M’s Newsmaker of the Fortnight. After the high-profile acquisition of Sahara Airlines by Naresh Goyal’s Jet Airways and the purchase of a strategic stake in Air Deccan by the flamboyant Vijay Mallya (Kingfisher Airlines), Thiagarajan too has ambitious (mark that word!) plans up his sleeve. Grapevine has it that the young entrepreneur plans to acquire a 51% stake in Spice Jet for about $158.53 million and a similar stake in Go Air for $24.4-$36.6 million. With the two deals coming by, Thiagarajan will become the third ‘private’ pillar of the Indian aviation industry which is right now in the consolidation mood.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative