'Indian airline firms to raise $1bn in equity, debt'

Bangalore: Airline firms in India are expected to raise more than $1 billion in private equity and debt in 2007-08, with at least two carriers set to hit the capital market a year later, says a study released on Thursday.
The industry will also witness a shakeout in the form of mergers and takeovers, to eventually see the emergence of two full-service carriers, three-four large national operators and a similar number of regional players, the study adds.
"Despite the bullish market projections for India, overseas experience would suggest that it is extremely difficult for a market to absorb this many new entrants," says the study released at the Aero India show here.
"This is compounded by the fact that the airline management in some cases is relatively inexperienced and untested," it says.
"The merger of the two state carriers, Air India and Indian Airlines, which is scheduled to be approve by March 31, will set the ball rolling for a further consolidation and mergers and acquisitions."
08/02/07 Indo-Asian News Service/Hindustan Times

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Categories: General Aviation feb 2007