These Losses are absolute Market Tactics guys...
Its difficult to mask profits as losses in a closely watched sector like aviation. But many a people have voiced similar opinions now and again.
Anyways, regardless of losses or profits, fact is that the Indian aviation is growing at a rapid rate. That the growth isnt exactly healthy and accompanied by profits is a matter of debate.
So, the FDI is bound to attract investors just for the expansion. The number of Indian fliers is expanding rapidly and its not just limited to the domestic markets.
The main incentive could be to use the Indian carriers as feeders for their main international operations. If they can nurture and turn around their Indian investments, great for them.
From what I hear, Jet and Indigo dont stand to profit a lot from the FDI.
KF needs it baadly. Rumors suggest an informal deal has already been struck with a European biggie. No matter what the losses, Aviation is potentially one of the most profitable businesses ever. So, keep your fingers crossed.
Spice is very interestingly positioned for this FDI. No doubt about that. GoAir is a small player, but stands to win too. AI isnt interested.
I say FDI is good for the industry and especially for the unemployed ones like us.
Also, I read in the times a few weeks ago that the DGCA is planning to make compulsory a regional service from every airline in India. This will help connect Tier I & II cities by air. This translates to regional turboprop services with ATRs, Q400s, B1900 and the likes.
Thats another move I think should help us unemployed ones..