I am going to this edition of Proto in Dehi and was booking the tickets myself this time when i noticed that the fuel surcharge was close to the price of the ticket,

end result? had to pay like 40% more then i thought i would have to, it got me thinking that that good old days of flying at 2000Rs has come to an end. Man, i miss those days! and gota credit Cpt. Gopinath and Deccan for opening up the Indian skies to the masses.

Anyways, a very interesting piece of news caught my eye today.

“Billionaire Wilbur Ross to Invest $80 Million in SpiceJet”

that was in rediff.

the international media has a slightly different take

“Billionaire Wilbur Ross saves low-cost India airline Spicejet”

For the uninitiated,  Ross is what they call a Vulture investor or an investor who plonks in money when firms have hit rock bottom

Well, good news for Spice, coz Ross has a track record of restructuring  failed companies, but it is still a sign of times, that the industry continues to bleed at a when most of them have predicted profitability. This is partly due to the price of the most valuable commodity on earth today-oil

We have been talking about tech bubble, speculating if the Indian capital market hitting 20000 had been a bubble etc., but Ross believes that a very real bubble is the current price of oil.

And with Spice operating in the world’s 2nd most populated country and squarely targeting  the 200 Million strong Indian Middle class, Spice is undoubtedly a decent buy for Ross.

Will Spice turn around or will it play out with an asset sale, only time will tell.

BTW., i am travelling in Spice jet 🙂

Advertisements