Aviation biz to enter consolidation zone in '07

New Delhi: The entry of big corporate houses, such as the Tata group and the Reliance-ADA group as financial investors and global private equity players like US-based Texas Pacific Group, into the Indian aviation business may well expedite the consolidation in the industry leading to mergers and acquisitions in 2007.
While expansion of seat capacity — through introduction of new aircraft — will continue to meet the growth in passenger demands next calendar year, many in the industry feel that the interest shown by big corporate houses in the aviation business bodes well for the industry.
Many stock market analysts feel corporates may be just testing the water as financial investors to start with, but their entry into the business as strategic players is expected in a major way over the next 12 to 15 months.
What many in the industry are excited about is the interest shown by US-based fund Texas Pacific Group in India.
19/12/06 Sudipto Dey/Ecomonic Times

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