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  • Consolidation In The Offing In India?
    Posted by Madhu Unnikrishnan 7:29 PM on Dec 09, 2009

    Naresh Goyal, chairman of Jet Airways, says the Indian domestic airline market is ripe for consolidation. Although the market has seen torrid growth in recent years, Goyal notes that too much capacity remains. Carriers have been slashing fares to below cost to keep loads high. "It's only a matter of time before an Indian carrier mergers or folds," Goyal said Dec. 8 in Washington.

    Jet itself still is digesting its acquisition of Sahara and plans eventually to merge those operations into its Jet Connect service to make an LCC, Goyal said. Even despite this, he forecast lean times ahead until the market shakes itself out.

    But with a middle class of "300 million people" with few alternatives to travel, thanks to the poor highways and slow railways, India remains poised for growth, Goyal said. When it might take off, though, remains to be seen.

    Tags: tw99, india, airlines, consolidation

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