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Fallacy in Airline Industry

, April 6, 2012, 2 Comments

Understanding some causal affect relationship between economic factors and firm profitability, we try to derive any pattern which gives rise to merger of two firms. Investors interested in investing in this sector can gain by understanding these patterns and time to entry and exit.  With few more dynamics taken into account, can investor decide on which firm to invest to maximize profit?

MarketExpress presents “Fallacy in Airline Industry” – a Two part series which will focus on state of Indian Airline Industry

In order to establish the objective, domestic airline firms in Indian market have been analyzed and discussed. Few of these players have income from other segments like cargo and leasing operations, our focus is more on passenger carriers. While analyzing financial data of firms operating in all segments, we still consider total sales and total net income as percentage affecting bottom line from these operations is very low ( less than 8%).

Emphasizing how domestic airline firms often fall into the trap when they start looking for “One more customer…” – Fallacy in Airline industry, is a report to gain insight and foresee any investment opportunity in this sector.

  • Andy Robert

    Quite informative, I have purchased 3000 shares of KFA at 41, now some people say it can go bust and share price will fall to sub 10. What is your view, any other corporates like TATA or Reliance are interested in KFA. 

  • How Jet and Indigo survives?