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CONSOLIDATION INEVITABLE IN INDIA'S CIVIL AVIATION: ECO SURVEY.
NEW DELHI, March 3 Asia Pulse - Mergers and acquisitions in the Indian civil aviation sector will enable airlines, which are reeling under declining margins, to increase revenues through operational synergies, the Economic Survey has said.
Terming consolidation in the sector as "inevitable", given the intense competition between the airlines and declining margins, the Survey said the process has already commenced.
"The process has already commenced and the recent mergers and acquisitions that have occurred in the public and private sectors are expected to enable the airlines to increase revenues through synergies in operations and by ensuring optimal utilisation of resources in this capital intensive sector," it pointed out.
Citing the example of merger between national carriers Air India and Indian, the Survey said the move was aimed at building strong and sustainable business entity.
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Source: HighBeam Research, CONSOLIDATION INEVITABLE IN INDIA'S CIVIL AVIATION: ECO SURVEY.