Thursday, February 24, 2005
Jet Airways - aggressively priced?
"... There is no denying the fact that Jet has carved a niche for itself in a short span of time and is today the country's most preferred airline on any parameter, but what is of concern to the prospective investor is the aggressive pricing by the company. Several issues have hit the market and pricing was never a major issue amongst investors, In the case of Jet, the opinion is divided. One view is that the pricing is very aggressive and that there is nothing left on the table for the investors while the other view is that Jet is playing on the growing Indian tourism market and is also set to gain substantially from the growing economy."
Summary of the analysis of Jet's prospects
Positives:
- posted by katongking @ 2:12 pm
"... There is no denying the fact that Jet has carved a niche for itself in a short span of time and is today the country's most preferred airline on any parameter, but what is of concern to the prospective investor is the aggressive pricing by the company. Several issues have hit the market and pricing was never a major issue amongst investors, In the case of Jet, the opinion is divided. One view is that the pricing is very aggressive and that there is nothing left on the table for the investors while the other view is that Jet is playing on the growing Indian tourism market and is also set to gain substantially from the growing economy."
Summary of the analysis of Jet's prospects
Positives:
- Leading Airline
- Young fleet
- Focus on business travel
- Aircraft utilisation
- Strong brand and loyalty
- Access to airport facilities.
- Competitive industry
- Limited suppliers
- Vulnerable to delays
- Dependency on Mumbai
- High debt
Also, the IPO of Jet Airways received bids 7.8 times the issue size at the end of the fourth day of bidding. The response trend indicates that 90 per cent of demand is at Rs 1,125, the top end of the price band for bidding.
- posted by katongking @ 2:12 pm
