The head of Indian airlines continues to be a pandemic targeting the health sector

Indian airline tycoon Ajay Singh had little experience in healthcare, but last November, as the country was plagued by coronaviruses, he was suddenly introduced to Covid-19 tests and later into genomic sequencing.

Known for his close ties to Indian Prime Minister Narendra Modi – who is credited with creating the “this time Modi government” election slogan in 2014 – Singh launched SpiceHealth, vowing that the tests would be cheaper, faster and more useful.

A few months later, the group spread across the country, giving tests in April to millions of pilgrims who joined the Kumbh Mela every year, as the country’s largest religious gatherings were later seen as an expansion event.

Singh’s pivot in the health sector from the loss-making airline sector highlights how some of India’s biggest tycoons have made progress, even in the pandemic.

India is one of the most affected countries in Covid-19, with more than 28 million cases and 335,000 deaths, many of which have occurred in its second wave of disasters this year.

Even before the last appearance, SpiceJet, in which Singh had a 60 percent stake, was out of the national lockout last year. The airline has suffered losses in the last four quarters and has delayed the salaries of some employees for weeks.

In February, its auditor Walker Chandiok & Co. said there was “material uncertainty” about SpiceJet’s ability to continue as a constant concern. Its losses would have been even greater if Boeing had not received the compensation expected for the landing of the 737 Max aircraft.

“We can’t understand how they are still alive,” said a director of an airline company.

Jitender Bhargava, the former chief executive of Air India, praised Singh for managing SpiceJet, which he rescued seven years ago when it almost failed and went fast to get rid of its Jet Airways rival aircraft in 2019.

“It has done well, but economically, few airlines have the cash. How long can one last with the second wave we have had?” Bhargava said.

But industry executives and analysts say Singh is an opportunist who can stand the turmoil.

“Indian aviation is drowning but Ajay will survive,” said New Delhi aviation analyst Neelam Mathews.

Tushar Srivastava, communications manager for SpiceJet and SpiceHealth, said the government “did not ask for or give favors” to the group’s businesses.

SpiceJet, under Singh’s control and direction, paid off all the debts needed to revive the company in 2014 and the government did not provide any financial assistance or waiver.

335,000

Covid-19 death toll in India

Singh does not come from an established Indian business family, such as Tata, a group that spans sectors from steel to software, or Ambanis, the dynasty behind Reliance Industries, which is dominated by petrochemicals and retail.

Observers see Singh, who earned a master’s degree in business administration from Cornell University, as a technocrat who has managed to navigate the world of business and politics.

“A person who can talk to both sides of the aisle, politics and money is a rare animal,” said Rohit Chandra, assistant professor of public policy at the Delhi Institute of Technology in India.

Singh was assassinated in 2006 by Pramod Mahajan of the Bharatiya Janata Party government, a former telecommunications minister and former fundraiser.

It is so close to the ruling party that BJP leaders frequently appear at Singh’s events. Modik inaugurated the launch of SpiceJet’s hydroelectric plant in October. A month later, Amit Shah, India’s interior minister and one of Modi’s closest lieutenants, appeared at the opening of SpiceHealth’s first mobile testing lab, a public-private partnership with the country’s leading clinical research organization.

Whatever his connections, Singh has been happy to change his health, as this year’s appearance came almost before the planes stopped almost a second time.

Led by his 24-year-old daughter Avani Singh, SpiceHealth, a separate SpiceJet company, has 15 mobile labs across the country, each with a daily test capacity of 3,000. SpiceHealth has set up a genomic sequencing facility at Delhi International Airport and talked about going to Avani for vaccine recruitment and distribution.

SpiceHealth was created using Singh’s personal money. The company began rapid testing and then focused on other products, including sales of the “SpiceOxy” ventilation device.

The Spice company team transported 34m Covid-19 vaccines across the country from January to April. During the second wave, thousands of oxygen concentrators were launched from India, Beijing, Nanjing, Wuhan and Hong Kong to alleviate gas shortages.

Not content with his health prevention and seemingly embarrassed by SpiceJet’s problems, Singh has expressed a willingness to strengthen his commitment to Indian airline abuse.

In March, Air India was selected as a bidder for the state monolith it has been trying to privatize for years in New Delhi. If successful, a buyer will be announced this year. Singh will have to take on $ 3.3 billion in debt.

“You have to give it to Ajay Singh, something that cannot be denied is that he is a boy who takes advantage of opportunities,” Bhargava said.