Got $500 million? Take over 3 airlines promoters
The decline in their market value comes at a time the government is thinking of allowing foreign airlines to buy up to 24% or 26% in domestic carriers. Currently, though foreign direct investment in the aviation sector is 49%, foreign airlines cannot apply.
The last year has seen a major fall in the market cap of airlines. The stock of Jet Airways, the country's largest private airline, closed at R243 on the BSE on Thursday, just a fourth of its November 2010 peak of R926. SpiceJet's shares closed at R22 against R97 of last November. The Kingfisher scrip, which had peaked at R90 last November, on Thursday closed at R24.95.
All three airlines have posted losses in the first half of this fiscal. While Jet reported a R836-crore loss, Kingfisher and SpiceJet posted R732 crore and R312 crore, respectively. Analysts said the losses for the full fiscal will only rise; so, there's little chance of their market cap rising in the near future.
Aviation advisory firm Centre for Asia Pacific Aviation (CAPA) India has estimated losses of
Be the first to comment.