Neil Mills quits as SpiceJet CEO

Mills left as he lacked operational freedom to run organisation

Neil Mills, who steered SpiceJet as it became one of the top-three domestic airlines in the past three years, has quit as CEO of the low-cost carrier.

Mills did not respond to calls and a company spokesperson called the development a market rumour. But sources confirmed his resignation had been accepted. A source said Mills was leaving the airline as he was not getting operational freedom to run the organisation.

Mills had joined the Kalanithi Maran-controlled airline in October 2010 from FlyDubai. He had succeeded Sanjay Aggarwal, who was moving to Kingfisher Airlines. But, since last September, Mills had been relegated to the second position in the hierarchy as board member S Natrajhen was elevated to the managing director’s post. Natrajhen, too, did not respond to calls and text messages.

However, sources close to SpiceJet management claimed Mills’ resignation had nothing to do with Natrajhen’s appointment as MD.

After Chief Commercial Officer Harish Kutty’s exit last month, Mills’ is the second resignation by a key official of the airline in recent times..

In three years that Mills was successful in turning around the airline's fortunes. Under him,  SpiceJet also took unconventional route of expansion. While other domestic airlines largely focussed on traditional routes Spice Jet took the lead in expanding in regional markets and also opened up new routes such as Kabul and Guangzhou. It also took the lead in massive discounting of tickets with a promotion offer of one million seats at Rs 2013.

Under Mills the number of routes increased from 22 in 2010 to 54 a few months ago. It recently crossed 55 million passenger mark and operates with over 50 planes comprising of Boeing 737 and Bombardier Q 400 turbo prop planes. Currently SpiceJet has a share of 19 % in the domestic market. The airline posted an annual loss of Rs 191 crore in last fiscal.

There were other respects too where SpiceJet attempted to set chart a different course. It sought government permission to directly import aviation turbine fuel but after over a year it did not secure the go ahead.  "He was disillusioned with the regulatory control in the country. His decision to quit has nothing to do with financial reason or losses made by the airline,'' a source said.