SpiceJet scrip falls after CEO resigns

New Delhi  : Stocks of budget-carrier SpiceJet declined by four percent a day after sources revealed that the company’s chief executive Neil Mills had resigned.

The company’s shares at the Bombay Stock Exchange (BSE) were trading down 4.01 percent at Rs.26.30, or 1.10 points around 3.00 p.m. from its previous close of Rs.27.40.

Mills’ resignation has come just a month after the company’s chief commercial officer Harish Moideen Kutty had put in his papers.

However, sources revealed that the resignation is under the board’s consideration. Mills’ resignation comes a year-and-a-half before his contract at the airline ends.

Mills has been with the company since 2010 and was hired by Kalanithi Maran, the promoter of Sun Group, after buying a majority stake in the airline from non-resident Indian Bhulo Kansagra.

Mills had come in after the then chief executive, Sanjay Aggarwal, had quit and joined the now defunct Kingfisher Airlines as its CEO.

He was earlier associated with FlyDubai. Earlier Kutty had resigned just days after the airline came out with losses of Rs.191 crore in 2012-13. The company is expected to declare the first quarter results in a few days.

Currently, SpiceJet has the second largest domestic market share of 19.8 percent, after IndiGo (29.5 percent).