Civil aviation prospect for FDI ? Kingfisher, Jet, SpiceJet...?

Mohan Q ? : Is Indian Civil aviation a viable prospect for Foriegn Equity participation?

Dear Mohan, as you are working in this field you are more professional than me. Generally my private opinion is that even increase ideas from 26% on 49%, it is still minority for FDI. The Civil Aviation Ministry has recommended 49% FDI in aviation - February 2012. So who knows. Anyway Aviation stock jump after this FDI increasing information. Stocks of Jet Airways and Kingfisher traded nearly 2.5 percent higher in opening session, it was during the Dec 2011. Now as we can see is Feb 2012 and Ministry starting "thinking" about 49%. So it means, that FDI is require. But international airlines don´t has a so much interest in low profit in domestic airlines. You know how is the situation globally with international airlines. So in my opinion FDI is not interesting in domestic airlines. Most of the new FDI will be used for old "things" and mainly bank loans, some revitalization action,but where will be the profit, how can be reach interesting ROI % ? I don´t think so. Maybe some new technology, or some New or Renovate Airport BOT (build-operate-transfer), PPP. You know how it is with Kingfisher Airlines, SpiceJet, and heroic Jet. Kingfisher in Nov 2011 has suffered a loss of Rs.1027 crores ($200 million) in the past fiscal year, adding to its mounting debt. Time seems to be running out NOT only for Kingfisher Airlines. Fuel, Tax, Employee, etc. I remember in Europe some bankruptcy like lowcost airlines SkyEurope (2010) from Bratislava, Slovakia and others. Some Airlines need help from local Goverments like Alitalia, etc. But it was 2009 - 2010. Now here in India is 2012. So hope India will be O.K. also in this sector. All the best to you.

Dr.Surjit Bhalla, Chairman of O[x]us Investments, Saumil Trivedi, Market Analyst, Harendra Kumar, Managing Director - Head - Institutional Equities & Global Research of Elara Capital and Dorab R. Sopariwala discuss the markets, surging gold prices, the telecom sector woes, Kingfisher bailout, economic growth, possible cut in interest rate by RBI and Aviation FDI.

Posted in: 49%, airlines, aviation, Aviation Ministry, BOT, Buil-operate-Transfer, civil, Domestic airlines, FDI, india, Indie, Jet, JetSpicy, Kingfisher, Transfer