So, where did it go wrong? Where has the money gone?
Perhaps you can tell me.........but I still think a lot of it has to do with India's place in the Corruption Index.
The above statement would be largely true if the guy had raised money from the capital markets or from some VC. From what I understand he pumped in most of his own money so siphoning it off would be a
process.
I think his business plan was flawed. Very simple and straightforward you cannot fly in India in only one region and give the major trunk routes a miss and expect to make money. He basically ran out of cash........there was a dialogue."ego issuing cheques that his business plan could not cash!" Instead of stepping up to the stone and hiring people who could fix the problem or being more humble the bugger till recently was also thinking about acquiring spicejet.
Regional low cost carriers in India such as MDLR, JAGSON, Paramount have and will never be successful until they link up like in the US or go national. To top it all the south is the most thrifty market and to get emotional and launch from ones home town is not thinking straight.
I agree however the the E has the potential to make a lot of money in India if deployed intelligently.