SpiceJet Executives Depart Amid Conflict of Interest Concerns

SpiceJet has recently seen the departure of two high-ranking officials, Chief Operating Officer Arun Kashyap and Chief Commercial Officer Shilpa Bhatia, following revelations that their spouses had established an aviation company, Sirius India Airlines Pvt. Ltd. This development raised significant conflict-of-interest issues within the airline, prompting the executives’ resignations.

The company founded by Meenakshi Kashyap and Ajay Bhatia, spouses of the SpiceJet executives, was registered in October 2023 with a primary focus on warehousing and aviation support activities. However, speculation arose regarding the company’s potential as a start-up vehicle for airline operations, a situation that SpiceJet stated it was unaware of until it surfaced in media reports.

Initially reported as part of a “strategic restructuring” by SpiceJet, the executives’ departures have since been clarified by sources to Mint news outlet as being requested due to the conflict of interest their spouses’ business venture represented. “It was unacceptable that the top executives of an airline were entering the same business via their spouses,” remarked an individual familiar with the matter. Both Kashyap and Bhatia submitted their resignations, marking their exit from the airline.

This development comes at a time when SpiceJet is undergoing a comprehensive restructuring to enhance its competitiveness and financial stability. The airline has integrated the exits of Kashyap and Bhatia into a broader initiative announced in February 2024, which involves reducing its workforce by approximately 1,400 or 15% by the end of March, aiming to achieve significant savings in annual payroll expenses.

The situation underscores the critical importance of maintaining clear boundaries between personal business ventures and professional responsibilities in the aviation industry, especially within senior management roles.