Thursday, October 4, 2007

Mergers in Aviation...

Ever thought the impact of mergers that’s takin place in Indian aviation will lead to??? The rosy picture what we see is not that rosy if we analyse carefully the complete scenario. Whats the basic reason of mergers, are airlines loving to get merged in order to have some sort of benefits to them…I don’t think so, they are doin it due to compulsion, the financial compulsion. Air Deccan sold its stake to Kingfisher only due to financial crisis, Air Sahara sold only due to mounting losses (the second deal). GoAir is cutting operations, even Spicejet may also be on sale (some stake). So, whats the mergers will finally lead…it will lead to cartels. Cartels of 2-3 airlines coming together like Kingfisher – Deccan, Jet- Jetlite, Air India or even Paramount with Spicejet or GoAir , may be both on Paramounts side. The cartels then formed will lead to some kind of monopoly with big players having there own say, prices have already started to going up, they are already heading north. The big Q is the impact it will have on the passengers pocket??? Indian bloggers listing
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