Pros
- Market leader in India, only airline which has been continuously profitable
- It had quite large cash reserves before the crisis to allow it to ride this out
- Indian airline will most definitely continue to grow in long term
- Current crisis could shutter competitors like Spicejet which were already on the edge and force Tata to exit one of its two airline stakes (Vistara and Air Asia)
- Increasing international routes
- No exposure to Boeing Max
- Known to be diligent and out of the box at cutting costs
- Main promoters have 37% share each who are at war with each other
- Allegations of corporate misgovernance. Ironically the fact that both promoters are at odds with each other should keep both of them on their toes and reduce risk of fraud
- Airline industry is quite difficult in general
- Very large pending order with Airbus. Needed to refresh anyway but also a risk of overcapacity if the market doesn't grow as expected. Cancellations are quite expensive.
- P&W Engine trouble history. Although I heard they are changing vendor for newer planes, there a continuous grounding risk from DGCA. i do hope they use the grounded time now to replace all engines ASAP.