Aviation space may remain under pressure, says Tandon

Aviation space may remain under pressure, says Anand Tandon, CEO, JRG Securities.

Tandon told CNBC-TV18, “Aviation space, economics has improved in the last few months for the simple reason that some competitors have got knocked out but that said this is an extreme cyclical sector with relatively low entry barriers. It should not be too difficult for if the demand continues to remain high for somebody else to begin to enter as well.”
He further added, “The fundamental issue with this industry is the fact that most of the operating costs are fixed and especially in terms of the infrastructure especially airports and so on those cost continues to rise in an uncontrolled manner. So, this is an industry which will continue to remain under some pressure, it is not something that I would recommend that should be for the uninitiated.”