Few seen betting on India’s aviation story

Mumbai: For any investor to put money, there has to be a business case.
Does India’s aviation sector have one? All it has is a plethora of structural issues that 49% foreign direct investment – which was allowed on Friday after being kept in abeyance since 1997 — can’t solve, said experts.
India was the worst performer among aviation markets globally as domestic air traffic fell 1.1% in July, reflecting a flailing economy, according to the International Air Transport Association.
The total accumulated losses of the Indian aviation sector stood at a whopping (from 2006-March 2012) $8.5 billion and the number is likely to touch $10 billion this year.
“FDI is not a panacea for the industry. The first obstacle is valuation,” said an analyst with an international brokerage.
15/09/12 Yuga Chaudhari & Promit Mukherjee/Economic Times

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Categories: Indian Aviation- In General Sep 2012