Reply To: JAL- Ugent talks to avoid Bankruptcy

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Gentlemen, I wouldn’t get too carried away about the prospects for air travel in India. Air India has recently received a cash injection from the Government and the private airlines – Jet/Kingfisher, Spice Jet, Indigo etc., – are all taking a beating. The fact is, India and China are still, despite what we might be told be breathless reports, rural economies and it will be a while before more passengers can come ‘on stream’ and sustain air travel in those countries. With oil inching higher and incomes stagnating (or,worse, falling) I don’t see how the would-be flyers would be able to afford to or want to fly and I don’t see just how the airlines, not just in India and China, can keep discounting tickets.
Lets not forget that private airlines in India have folded or been amalgamated into larger entities in the past – Modiluft, for instance.
Personally, I think the prospective merger with/acquisition of JAL is a bad idea, kind of like eating poisonous puffer fish. :o)

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