Mumbai: Is the Indian aviation sector seeing a credible revival after a turbulent 2012, when the country’s airlines posted a combined loss of $1.6 billion, and saw a popular brand Kingfisher Airlines go bust?
Market analysts who’ve usually been bearish about the sector have started heeding to the positive developments that have taken place in the last few months. Nikhil Vora, MD & Head of Research at IDFC Securities in a recent interview to CNBC TV18 said “This is a market which is just about opening up. It will become competitive in the next few years, but possibly will also become profitable which was not the case earlier.”
There is, all of a sudden, a lot to be bullish about. Analysts like Vora expect $2-3 billion to flow into India, through the FDI route over a period of time. The Jet-Etihad deal has got the cabinet nod, the Tata-AirAsia JV is expected to commence operations by early next year and the Tata-SIA combine is busy getting approvals in place before they take to the skies. Others like Qatar Airways are reported to be keen to expand their Indian footprint, leading experts to believe there will be significant M&A action in the Indian skies over the next 12-18 months. Experts believe these partnerships will open up vast networks to Indian passengers, as carriers join global alliances.
Read news in full 16/10/13 Nikhil Inamdar/Business Standard
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