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!

PPP Development Of Airports First Conceived In UPA II Regime

The six airports which have been given green signal for private participation by the union cabinet recently are among

Read More...

DGCA Sees No Need To Change System To Catch Drunk Pilots On Duty

Though the number of pilots “caught drunk” while reporting for duty has been increasing over the years, officials of

Read More...

AAI Develops Plan To Decongest Surat Airport

Air traffic congestion at Surat airport in the last couple of months has prompted Airports Authority of India (AAI)

Read More...

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu