Friday, May 26, 2017

Foreign players owning airlines in India can have security issues: FIA

Mumbai: Continuing its opposition to the government allowing foreign players to own an airline in India, the Federation of Indian Airlines (FIA) has said the move could have serious "security" implications besides other issues.

In a letter to the government recently, the FIA also said that the decision to allow foreign carriers owning an airline in the country will create a very inequitable competitive environment for them.

The letter comes against the backdrop of Qatar Airways announcing its plans to set up an airline in India with the Gulf nation's sovereign wealth fund, and the government recently saying that it is looking at bringing the rules and regulations regarding ownership and control of an airline in conformity with the new FDI norms. "By India permitting 100 per cent FDI in scheduled airlines, the Indian government will have no visibility on where control lies. Such a move could also have serious repercussions on India’s national security," the FIA said in the letter.

The FIA has four private airlines --IndiGo, SpiceJet, Jet Airways and GoAir as its members. The four airlines together command around 75 per cent share of the total domestic air travel market. "Such foreign-owned and controlled Indian airlines will also gain unhindered access to defence airfields in India.
25/05/17 PTI/New Indian Express