I have a different view. While I do acknowledge the effect of competition in any business, more so when the incumbent is trading at high valuation. Airline business is not about emotions, it is about the availability and affordability. All things being equal, given the chance to pick one, a person chooses what he likes. But, unlike other consumer-facing businesses like FMCG or entertainment; travel, particularly air travel is not emotion driven. People want to get from point A to point B, ASAP, and be done with it. The necessity plays a bigger role here. Market knows about competition, more so if the backing is from Tata; and having two strong airlines, a duopoly is always welcome, travelers will have choice. And if indeed, aviation sector expands with time in India, holistically, there will be growth in the business, thereby the continuation of price appreciation.
Not invested, had a position a few years ago. Thinking of the business again.
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