Amber Dubey of KPMG tweeted after Jet Airways' decision not to bid for Air India. IndiGo also pulled out last week
Amber Dubey says India has the potential to surprise the top two aviation powers, US and China, by 2030. Also, he feels Air India has ‘significant’ untapped value to elicit interest from national and international carriers
Last week, Nitin Gadkari, Minister of Road Transport and Highways of India said the government was looking at a proposal to turn roadways in far-flung villages into runways for planes to land and take off. But there are only cons to the idea.
Aviation stocks on June 13 declined by up to 3 percent amid a slew of passenger-centric proposals which may hit the airline's bottom-line
Not a single passenger has passed through the gates of an airport big enough to handle more than 300,000 travellers a year, with parking bays for three 180-seater narrow-body jets.
The deal marks the entry of the group into the defence sector. Many believe this sector will benefit the most from the “Make in India" campaign. Amber dubey of KPMG spoke to CNBC-TV18 to discuss the impact of this deal.
Amber Dubey, Patrner and Head- Aerospace & Defence at KPMG believes the government should consider 74 percent foreign direct investment (FDI) in defence, as the sector will not see much technology transfer at 49 percent composite cap.
The market leader, IndiGo, followed a consistent strategy of on-time performance, new fleet, competitive fares and hassle free service. The exit of Kingfisher in December 2012 helped and Indigo today has a dominant market share of over 30 percent.
The Tata‘s will hold 51 percent and Singapore Airlines will get 49 percent. But the deal may face regulatory turbulence as Tata's also hold 30 percent in a joint venture (JV) with Air Asia India reports CNBC-TV18‘s Ronojoy Banerjee and Animesh Das.
Also, this is the first FDI deal in aviation space and has its own complexities. Other foreign carriers may switch gears after they find Indian government committed to attract foreign investors, they say.
The DGCA has decided to ground every Boeing 787 Dreamliner in the country and with this move, Air India's dreams of returning as the king of the Indian skies have taken a severe blow, reports CNBC-TV18‘s, Sunanda Jayaseelan.
With air ticket prices touching the skies this festive season, allegations of cartelisation by airlines have resurfaced. While a concerned civil aviation minister Ajit Singh has suggested a probe into the matter, experts say higher fares are here to stay.
Low cost airline Spicejet has some big expansion plans lined up this financial year. But much would depend on how effectively it will be able to raise capital to execute those plans.