Pvt airlines will go for consolidation

New Delhi: Analysts expect the low cost carriers to firm their grip on the passengers with Centre for Asia Pacific Aviation predicting that the budget airlines will account for nearly 70% of the market in three years.
Similarly, the mega airlines - Singapore Airlines, British Airways and Emirates - are expected to continue giving a tough fight to the national carrier.
What the merger is expected to do is encourage the private carriers, some of whom are already allowed to fly overseas, to consolidate. "We could see very hectic consolidation and M&As in the next 12-18 months,"says Capas chief executive officer Kapil Kaul.
Jet Airways, which earlier tried to acquire Air Sahara, is expected to start the hunt once again once the arbitration proceedings are over. Similarly, Vijay Mallya's Kingfisher and SpiceJet, which has recently received funding from the likes of the Tata group, could also be on the prowl.
22/02/07 Times of India

To Read the News in full at Source, Click the Headline

Categories: General Aviation feb 2007