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In the continued frenzy that is the Indian airline industry, airlines are expected to raise $1B in equity debt with at least two expected to go public in 07/08 according to a recent study. Eschewing profits in the race for market share, airlines continue to be bullish that the rising tide will lift all boats or in this case airplanes, regardless of profitability or management expertise. The study suggests the market cannot sustain so many airlines and that a shakeout is imminent:

The industry will also witness a shakeout in the form of mergers and takeovers, to eventually see the emergence of two full-service carriers, three-four large national operators and a similar number of regional players, the study adds.

Read more about the study in the Hindustan Times.