Valuation of IPOS & acquisitions - the Indian aviation industry

Abstract

The aviation sector has grown tremendously over the past few years. From being a service affordable by only a few, the industry is now catering to an ever increasing customer base, fiercely competed by a number of public and private carriers. Passenger traffic has grown by 20% YoY and is expected to stabilise at 6% in the long run, according to AAI research. Rising ATF costs, poaching of personnel (pilots, technical specialists and crew members) by rival carriers, and undercutting by stiff competition are the major areas of concern for the industry.