The acquisition of Air India’s operations by the Tata Group is likely to change the dynamics related to earnings and valuation of listed airline operators InterGlobe Aviation and SpiceJet NSE 1.68 %.
Better pricing power largely driven by consolidation, not-so-high aggression from players, and strict focus on cost-efficiency are some factors that are likely to improve the industry’s normalised operating profit before tax (Ebitda) in the medium term, analysts said.
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