Synopsis on the dissertation project

CONSOLIDATION AND OPPORTUNITIES IN INDIAN AVIATION SECTOR

Submitted to Prof.Ruchi Mehrotra Submitted by A. Chandra Mohan 10SBCM0062

1. Introduction:Mergers and Acquisitions have gained importance in recent times. Business consolidation by large industrial houses, consolidation of business by MNCs operating in India, increasing competition amongst domestic companies and completion against imports have all combined to have mergers and acquisitions activities in India. In response to the growing business, regulators have issued guidelines to facilitate smooth transactions. The civil aviation industry is going through a phase of consolidation. The trend today is the merger and acquisition of airlines, in order to have less number of large airlines rather than having more number of small airlines. Another reason is the opening up of international routes to private airlines such as Jet airways and Air Sahara. Efficiency in operations and acquiring a wider network are also some of other reasons for merger.

Research Motivation:Civil Aviation all over the world has come a long way since its inception. Indian Civil Aviation industry has gone through recent boom which was followed by recent mergers namely: Kingfisher and Deccan Airlines, Jet Airways and Sahara Airlines and consolidation of Air India and Indian Airlines in the form of NACIL (National Aviation Company of India Limited). If Indian Aviation has to save itself from reaching saturation point and still remain competitive these mergers were very important for it to do so. Thus , the need to analyze any past merger arises in order to judge whether the decision taken by these airlines were correct and whether these airlines after merger were running profitably or not. The analysis would help other banks to take their steps carefully, systematically and logically.

RESEARCH OBJECTIVES:The objective of report as follows To study the history and current scenario of Indian Civil Aviation Industry

To know the various guidelines followed by the company at the time of merger.

To understand the various type of methods used to value the company at the time of merger.

To study the mergers which have taken place in past in Aviation industry and to analyse their pre and post merger financial performance in order to know the correctness of the merger decisions

To forecast future of Indian Aviation Industry

Hypothesis: The profitability of the company after merger is greater than the profitability of before merger.

Research Methodology
The report based on secondary data. It does not involve any primary data. The Methodology adopted in this report is to gather information from various published articles through websites, journals, books, magazines and newspapers. Financial statements of aviation companies which involves in merger are obtained through internet (websites) This is a descriptive research as the research is a description of the events that took place.

Tools:In this project the researcher used financial tools like ratio analysis.

Expected Outcome:The researcher can get an idea on how the Indian aviation Industry is growing. He also can learn about the pre-requisites before merger. He can also learn on how the company is performing in their pre and post merger. The researcher can also know about the methods of the valuation the company.

References:www.sify.com www.marketsense.org www.ndtv.com www.moneycontol.com www.civilaviationweek.com