Goyal Expects More Mergers in India

Jet Airways (India) Ltd., the nation's biggest domestic carrier, expects more mergers among airlines as tickets sold as low as 2 U.S. cents lead to losses of $500 million for the second straight year.
Jet Airways may make more acquisitions after buying Sahara Airlines Ltd., Chairman Naresh Goyal said in an interview yesterday at the Paris Air Show. The company isn't in talks with SpiceJet Ltd., he said, denying reports that negotiations have been initiated with India's second-biggest low-fare carrier.
``Consolidation is a must,'' Goyal said. ``It will happen because the industry is getting sick. That's why we went for Sahara. I've not spoken to SpiceJet as I stand today.''
``Most of the airlines, in fact all, are losing money because of the irrational pricing,'' Goyal said. ``We are okay as far as the bottom line is concerned. We are in a far better position than the competition since we bought Sahara.''
20/06/07 Kartik Goyal and Rishaad Salamat/Bloomberg

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Categories: Airshow Paris 2007, General Aviation Jun 2007, Jet Airways Jun 2007