Other players in the Indian aviation sector are likely to consolidate their positions, as the King of Good Times continues in its death throes, says a research note from Bank of America Merrill Lynch. To make the most of the situation, they are unlikely to add capacity even in the busy festival season.
“Indian carriers are not renewing the expired leases and also sub-leasing aircraft in order to keep the capacity under check,” said the brokerage, which does not expect Kingfisher Airlines (KFA) to return to normalcy in the near term.
Both Kingfisher and Air India are saddled with high debts and employee unrest.
Kingfisher only has a 3 percent market share. It it were to lose its licence its competitor airlines would get a better chance at improving their profitability.
12/10/12 First Post.com
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“Indian carriers are not renewing the expired leases and also sub-leasing aircraft in order to keep the capacity under check,” said the brokerage, which does not expect Kingfisher Airlines (KFA) to return to normalcy in the near term.
Both Kingfisher and Air India are saddled with high debts and employee unrest.
Kingfisher only has a 3 percent market share. It it were to lose its licence its competitor airlines would get a better chance at improving their profitability.
12/10/12 First Post.com
