Ideas For Profit: IndiGo, SpiceJet Set To Soar


Despite facing high levels of competition, India’s aviation industry is in a sweet spot thanks to a favourable operating environment led by increase in passenger traffic, improving utilisation and government’s accommodative policy.

hough rising air turbine fuel (ATF) prices are posing a lot of challenges to the airline carriers, players having an excellent geographic coverage, cost management and performance, along with sound financials health are well placed.

Recent weakness in the stock prices of Indian airlines on the back overall market volatility and rising ATF prices is providing an opportunity to board fundamentally strong business for the long term. We prefer IndiGo and SpiceJet from this space.

Opportunities for the industry

In the last 4 years, domestic traffic registered a 20 percent compounded growth, gaining market from railways. The government’s regional air connectivity scheme – UDAN – is another avenue for airline carriers to capture growth originating from non-trunk routes. It has already cleared many routes under this scheme. Read More

You may also read!

2008 Delhi serial blasts: 10 years on, survivors say how blasts changed their lives

Ten years after five serial blasts ripped through the capital, killing 26 people and injuring 135 others, The Indian

Read More...

Defence Industrial Corridor In Uttar Pradesh To Kick Off With BEL Project

The Uttar Pradesh government’s showcase defence industrial corridor project will get off the ground with a manufacturing facility to

Read More...

KAKADU 2018: INS Sahyadri Builds Bridges Of Friendship In Australia’s Largest Maritime Exercise

Exercise KAKADU 2018, Australia's largest maritime exercise which wrapped up on Friday, witnessed the participation 23 ships including Indian

Read More...

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu