Tuesday 20 November 2007

Investing in Airline Companies

Virgin Altantic is on its way to make an entry into the Indian Skies.

The owner, Sir Richard, who is here in India, have clearly stated that he wants to fly his Virgin Atlantic planes on the internal Indian routes and serve the indian masses. Not only that, he has a strategic tie up with an Indian company, which is bidding for telecom spectrum to enter the telecom and mobile services in India.

He is even intending to start his A380 large airliner services from Indian Airports.

In my previous article Effect of MnA on stock prices, I've mentioned about the case of foreign players entering the Indian internal routes and endangering the Indian airline companies. Seems like the cookie is about to crumble.

Though Richard complained about the bureaucratic framework and long delays in getting the requierd permissions from the government, his open declaration about the intention of entering into the indian internal skies have started sending jitters to indian players. No wonder if the government someday allows the foreign players like Virgin Atlantic to fly on Indian routes. May be 1 year, 2 years or 5 yearas down the line, but someday it is bound to happen. Investors in Airline companies like Jet Airways and Air Deccan, please remain cautious.

Richard Brosnan and Vijay Mallaya are considered to be like headed businessmen - Lavish, Show-off and ready to take the business bull by its horns. Hope to see more players entering the frame and making life comfortable for the Indian passengers.

Link to previous article: Financial and stock market failures


Have questions, please read the comments and post your views and queries in the comments section which helps in open discussion and avoids duplicity of questions.

You may be interested in reading my previous articles. Here is the link to Table of Contents in a chronological order.

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