Ratan Tata, the outgoing Chairman of the Tata group, has said that the conglomerate is not likely to enter the civil aviation sector in the country due to destructive competition among various players.
Tata group was among the first to enter the sector in the country has since stayed away from the sector. Mr. Tata said that there was a proposal to set up a domestic carriers in association with Singapore International Airlines (SIA) in the mid-1990s.
He said, "It is a different sector today than it was at that time. It is somewhat like telecom. It is proliferated by many operators some of them in financial trouble. I would hesitate to go into the sector today in the sense that the chances are that you would have a great deal of competition which would be unhealthy competition."
He said that he is not concerned about the cut throat competition but pointed out that such competition has become destructive competition. He said that the companies usually become bankrupt and exit the industry in other countries, but in this country the companies continues to operate in such position.
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