Mega Mergers in Indian Aviation Industry

Air transportation is a major industry which has seen many mega mergers in recent years involving billions of rupees. Mega mergers take place through acquisition, merger, consolidation and combinations of two existing players. It has been seen from the market trends that this is an era of ―coopetition‖ not of competition and airline industry has also followed the same trend. The analysis here is focused on the various profound mergers and acquisitions that have taken place in the international aviation industry with special reference to Indian aviation market. Another objective is to quantitatively assess their financial position pre and post merger in terms of profitability and liquidity. It has been observed that some mergers and acquisitions resulted in the improvement of financial performance for the respective companies. Contrary to it, some companies were even declared bankrupt after operating for few years. So, it has also been found that these mergers do not guarantee success. The possible outcome can be positive or negative.