Tuesday, September 26, 2006

Competition give problems to aviation stocks

Rajen Shah of Angel Broking is of the view that competition is going to keep aviation players into problems for a long while.
Shah told CNBC-TV18, "Across the world airline companies have been in problems and many of them are in fact in huge losses. The same is the case with Deccan Aviation, the results Rs 300-350 crore kind of loss and even this year I do not expect the company to be into profit, around Rs 150 crore or so would be the loss in the current year that is what I expect. FY08 we can expect maybe marginally breaking even in cash."
He further added, "The kind of competition we are seeing in this space Kingfisher, Go Airways, Jet Airways, Deccan Aviation, Indian Airlines, Paramount and so many players and with cutthroat competition, no doubt the air traffic is increasing at a very good pace ..."
25/09/06 Moneycontrol.com
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