Airlines see better profits, less competition

New Delhi: With two mergers, first Indian with Air-India and now Jet-Sahara, all set to happen in 2007, expect market dynamics of aviation industry to undergo major changes.
After the mergers go through the paces, two strong players will together command over 50% of the market share, and 60% of the country’s aircraft fleet. Close on their heels will be the other full-service carrier, Kingfisher Airlines, which is in the process of ramping up its fleet size from 27 to 45 over the next eight to 10 months.
Reacting to the renewed merger deal between Jet and Air Sahara, a senior executive from Kingfisher Airlines said: “We are working towards achieving our vision to be the largest private domestic carrier in the country by 2010.” Kingfisher currently has over 10% market share.
Most of the industry players were of the view that the consolidation will help the industry improve passenger yields and sagging bottomlines. “It’s a very positive development for the aviation industry, which requires consolidation. It is also expected to improve its overall profitability,” said SpiceJet director Ajay Singh. V Thulasidas, chairman, Air-India, pointed out that it is important for the industry to have strong players.
11/04/07 Economic Times

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

Categories: General Aviation Apr 2007