The ailing Indian aviation sector is finally getting its life back, thanks to reduced jet fuel prices and a surge in passenger traffic.
While the fuel prices have dropped by nearly 40% since 2014, as per estimated by the International Air Transport Association (IATA), the air traffic growth in India at more than 12% outstripped all countries in the first six months of the year.
Meanwhile, majority of the budget carriers like IndiGo, Jet Airways, SpiceJet and Go Air are expected to register profits after the government announced its draft civil aviation policy proposing a host of incentives for the aviation sector.
On Friday, billionaire Rakesh Jhunjhunwala, also known as India's Warren Buffet, bought 1% of Jet Airways and also mopped up shares worth Rs 400 crore in IndiGo IPO.
He also invested money in SpiceJet. Not only him but many other investors have invested money in the aviation sector.
"Big investors who always look for midcap ideas may have realised that the aviation companies could do well in future given the improving macro factors like growth in passenger traffic, improving margins over falling ATF prices coupled with policy changes, which could be a game changer for the industry," Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services told ET.
02/11/15 Business Insider
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While the fuel prices have dropped by nearly 40% since 2014, as per estimated by the International Air Transport Association (IATA), the air traffic growth in India at more than 12% outstripped all countries in the first six months of the year.
Meanwhile, majority of the budget carriers like IndiGo, Jet Airways, SpiceJet and Go Air are expected to register profits after the government announced its draft civil aviation policy proposing a host of incentives for the aviation sector.
On Friday, billionaire Rakesh Jhunjhunwala, also known as India's Warren Buffet, bought 1% of Jet Airways and also mopped up shares worth Rs 400 crore in IndiGo IPO.
He also invested money in SpiceJet. Not only him but many other investors have invested money in the aviation sector.
"Big investors who always look for midcap ideas may have realised that the aviation companies could do well in future given the improving macro factors like growth in passenger traffic, improving margins over falling ATF prices coupled with policy changes, which could be a game changer for the industry," Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services told ET.
02/11/15 Business Insider
