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More Mergers In Indian Airline Market 2009?  
User currently offlineShanxz From Singapore, joined Apr 2006, 243 posts, RR: 0
Posted (5 years 6 months 3 weeks 3 days 19 hours ago) and read 4048 times:

In a recent interview, an Indian aviation expert with Centre for Asia Pacific Aviation predicted that there will be more consolidations/bankruptcies in the Indian market in 2009.

Quote:
There are too many airlines in India at present and with their current financial state, consolidation is inevitable and desirable, either through merger or through market exit.

My question is that after the mergers of Air-India/Indian; Jet Airways/Sahara, Kingfisher/Deccan, what more can we expect? SpiceJet and Indigo are in very strong positions. GoAir might just stumble and be bought over, but who else?

Who's likely to be acquired? Who'd likely to go bust?


Airlines are in the service business, not transport. Brand matters...
15 replies: All unread, jump to last
 
User currently offlineAviationbuff From India, joined Mar 2008, 1425 posts, RR: 3
Reply 1, posted (5 years 6 months 3 weeks 3 days 19 hours ago) and read 4034 times:

Recently SpiceJet has expressed their intentions of acquiring an Indian LCC. As they feel that Indian aviation market is too small for five LCCs to survive. The 5 LCC's are:
1. Kingfisher Red - Not for Sale (too big for Spicejet)
2. JetLite - Not for Sale (too big for Spicejet)
3. Indigo - I dont think
4. SpiceJet
5. GoAir

Out of the above 5 only GoAir is the weakest and probably Spicejet and Paramount may be interested in acquiring it.


User currently offlineHAWK21M From India, joined Jan 2001, 31684 posts, RR: 56
Reply 2, posted (5 years 6 months 3 weeks 3 days 18 hours ago) and read 4011 times:

Only likely sales will be GoAir.
regds
MEL.



Think of the brighter side!
User currently offlineAsianflyer From Singapore, joined Feb 2009, 2 posts, RR: 0
Reply 3, posted (5 years 6 months 3 weeks 3 days 18 hours ago) and read 4008 times:

Hi all, my first post here. Air India/Indian, Kingfisher/Red and Jet/JetLite now have a combined 70% market share so increasingly tough for all the smaller players to compete. I agree Indigo and Spicejet will probably survive as they have around 12-14% market share each and good management, but how can someone like GoAir survive with its miniscule 2% share and no real market presence? My guess is they'll be the first one to go once their cash runs out.

User currently offlineHAWK21M From India, joined Jan 2001, 31684 posts, RR: 56
Reply 4, posted (5 years 6 months 3 weeks 3 days 18 hours ago) and read 3997 times:



Quoting Asianflyer (Reply 3):
how can someone like GoAir survive with its miniscule 2% share and no real market presence? My guess is they'll be the first one to go once their cash runs out.

GoAir has expressed its desire to sell out at the right price in the past.
regds
MEL



Think of the brighter side!
User currently offlineAviationbuff From India, joined Mar 2008, 1425 posts, RR: 3
Reply 5, posted (5 years 6 months 3 weeks 3 days 18 hours ago) and read 3986 times:



Quoting HAWK21M (Reply 4):
GoAir has expressed its desire to sell out at the right price in the past.

and there were no takers at that time, even there were some rumors not quite long ago that Spicejet was also up for grabs and IT was considering to acquire.

If Paramount has sufficient equity then GoAir can be a good addition to them. Paramount can eventually become a national airline from a regional. GoAir will bring in the routes and parking rights.

I feel that GoAir will not add any value to SpiceJet as they operate similar routes with diverse fleet. SpiceJet is all B737 and GoAir is all A320.


User currently offlineNimish From India, joined Feb 2005, 3230 posts, RR: 9
Reply 6, posted (5 years 6 months 3 weeks 3 days 15 hours ago) and read 3919 times:



Quoting Asianflyer (Reply 3):
Hi all, my first post here

Welcome to A.net!



Latest Trip Report - GoAir BLR-BOM-BLR
User currently offlinePP705 From , joined Dec 1969, posts, RR:
Reply 7, posted (5 years 6 months 3 weeks 3 days 15 hours ago) and read 3915 times:

I am not from the aviation field. I am be wrong but I think Go Air will position itself as a regional carrier. At present I think all its routes are focussed on Western India besides some trunk routes between the metros. They are receiving thier new aircrafts regularly and have also introduced some form of a first class..(middle seat empty). I would just hate to see this carrier go. A couple of years back, I did get real good deals on BOM-DEL-BOM route with them. Initially they were on time but later they seem to have lost it somewhere mainly due to shortage of aircraft. I remember they once had less than the required 5 aircrafts. But I think things are changing for them slowly.

User currently offlineShanxz From Singapore, joined Apr 2006, 243 posts, RR: 0
Reply 8, posted (5 years 6 months 3 weeks 3 days 14 hours ago) and read 3892 times:



Quoting Aviationbuff (Reply 1):
SpiceJet has expressed their intentions of acquiring an Indian LCC.

Isn't SpiceJet itself a little small to acquire someone, at least right now?

Now doubt, Go Air is weak, but I wonder who is strong enough to acquire the loss-making airline...

Quoting Aviationbuff (Reply 5):
If Paramount has sufficient equity then GoAir can be a good addition to them. Paramount can eventually become a national airline from a regional. GoAir will bring in the routes and parking rights.

Isn't Paramount a business-class only regional airline? I'm not sure how an LCC like GoAir would fit into their model, unless they're looking to have a two-airline model.

Any thoughts on Kingfisher going out of business anytime soon? They're bleeding heavily right now, dont' have a CEO and only Mallya is holding it up.



Airlines are in the service business, not transport. Brand matters...
User currently offlineJr From United States of America, joined May 1999, 968 posts, RR: 6
Reply 9, posted (5 years 6 months 3 weeks 3 days 2 hours ago) and read 3744 times:



Quoting Shanxz (Reply 8):
Isn't Paramount a business-class only regional airline? I'm not sure how an LCC like GoAir would fit into their model, unless they're looking to have a two-airline model.

Business class service as they call it, with both 2x1 and 2x2 configuration on their aircraft. The service is petty good by the way. They could buy GjroAir and replace their fleet with the new E190s as the leases expire possibly. But judging by their conservative expansion that seems to have been working well for them, I wonder if they will do anything that drastic in a receding economy with a struggling carrier like GoAir.

When does paramount get the Embraer 190?



I've flown on 9V-SPK.
User currently offlineHAWK21M From India, joined Jan 2001, 31684 posts, RR: 56
Reply 10, posted (5 years 6 months 3 weeks 2 days 18 hours ago) and read 3668 times:



Quoting Aviationbuff (Reply 5):
I feel that GoAir will not add any value to SpiceJet as they operate similar routes with diverse fleet. SpiceJet is all B737 and GoAir is all A320.

If not mistaken,the A320s are all Dry leased....Only loss would be stores inventory.
regds
MEL.



Think of the brighter side!
User currently offlinePP705 From , joined Dec 1969, posts, RR:
Reply 11, posted (5 years 6 months 3 weeks 2 days 14 hours ago) and read 3616 times:



Quoting HAWK21M (Reply 10):
If not mistaken,the A320s are all Dry leased

I think some of them are owned by Go Air, especially the brand new ones.


User currently offlineRajrs From India, joined Aug 2007, 139 posts, RR: 0
Reply 12, posted (5 years 6 months 3 weeks 1 day 21 hours ago) and read 3535 times:



Quoting Asianflyer (Reply 3):
Hi all, my first post here.

Hi Asianflyer,
Welcome to A.net


Rajrs.

Quoting Shanxz (Reply 8):
Any thoughts on Kingfisher going out of business anytime soon? They're bleeding heavily right now, dont' have a CEO and only Mallya is holding it up.

I am not a aviation expert & not from aviation field but I guess Kingfisher is doing well on domestic ground , Internationally they are lagging behind only on LHR route . Am I correct ?

Rajrs.


User currently offlinePP705 From , joined Dec 1969, posts, RR:
Reply 13, posted (5 years 6 months 3 weeks 1 day 16 hours ago) and read 3492 times:



Quoting PP705 (Reply 11):
especially the brand new ones.

I think VT-WAE, VT-WAF, VT-WAG and VT-WAH are all owned by Go Air.


User currently offlineAviationbuff From India, joined Mar 2008, 1425 posts, RR: 3
Reply 14, posted (5 years 6 months 3 weeks 1 day 14 hours ago) and read 3475 times:



Quoting PP705 (Reply 13):
I think VT-WAE, VT-WAF, VT-WAG and VT-WAH are all owned by Go Air.

 checkmark 

All four of them entered service between September 2007 and September 2008. Apart from these 4 brand new aircraft, Go Air has additional 2 leased aircraft. (total fleet is 6)


User currently offlineAviationbuff From India, joined Mar 2008, 1425 posts, RR: 3
Reply 15, posted (5 years 6 months 3 weeks 1 day 13 hours ago) and read 3456 times:

CAPA reports today that GO Air is moving forward with a renewed agenda for growth it can move towards profitability. The article also states that the carrier has confirmed plans to add four A320s to its fleet this year (in February, March, May and June), for a total of eight A320s.

Does that mean that the 2 leased aircraft will be returned and GoAir will operate with aircraft owned by them.


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