Sunday, June 3, 2007

Another merger!!!!!!!!!!!!!!!!!!!!!!!!!!

In my last post, it was stated that the Indian aviation industry was undergoing a phase of consolidation with announcements of major acquisitions and mergers. Well, it seems that this would continue. The recent announcement of taking 26% stake in Air Deccan by UB Holdings Chairman Mr. Vijay Mallya (better known as the liquor baron of India) has set alarm bells ringing among the other Indian players. It is seen as a strategic move by both the airlines, as they could share their infrastructure and ideas, play better in such a highly competitive sector and cut down costs on operation and business. This is not the end of the fairy tale of consolidation, as another player has already announced similar intentions. These would go a long way in the development and maturity of the sector.

Let us hope that the low cost carriers don't move away from the scene too early. It was because of them that the aviation sector has developed to this extent and I can fly to Bangalore and be back with a mere 500 bucks even today.