Wednesday, May 31, 2017

Foreign Players owning Indian aircraft can pose security threats

Kolkata: The Federation of Indian Airlines (FIA) vehemently protested the government’s plan to allow 100 pc Foreign Direct Investment (FDI) in scheduled Indian carriers as it could pose a serious security threat to the country’s national security.
Allowing foreign firms to completely claim a local aircraft could have genuine security suggestions, other than offering ascend to different issues, the FIA has advised the government. “The decision to relax the foreign investment norm (in aviation) to 100 pc is unprecedented. No substantive country allows this,” the FIA wrote in a current letter to the government. “By India permitting 100 pc foreign direct investment (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.”
As per the FIA, such “foreign owned and controlled domestic airlines” will likewise increase unhindered access to resistance airfields. Last year, remote financial specialists, with the exception of abroad aircrafts, were permitted to claim up to 100 for every penny stake in neighborhood air transporters by changing the nation’s FDI directions.
Nonetheless, existing standards order that significant proprietorship and viable control (SOEC) of an aircraft must rest with Indian nationals, and the chairman and 66 pc of the board of directors of the carrier must be Indian citizens. “It must be noted that permitting 100 pc FDI in scheduled airlines and removing the SOEC requirement skews the creation of a level playing field,” the FIA stated.
30/05/17 Shalini Dasgupta/Media India Group

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