Saturday, April 22, 2006

Stakes in domestic carriers: Luck eludes foreign airlines

New Delhi: Civil aviation minister Praful Patel today said the government would continue to bar foreign airlines from picking up stakes in domestic carriers. “As of now, foreign airlines cannot pick up a stake in domestic airlines,” Patel said.
Sections within the government, including the finance ministry, want foreign airlines to pick up a stake in domestic carriers. However, the civil aviation ministry thinks otherwise. In its draft aviation policy, the ministry says the current policy of allowing up to 49 per cent FDI in airlines should continue.
Patel, however, said, “But government policies evolve with the changing scenario and this could happen when the government feels the necessity. At this stage, the present policy is sufficient to take care of the needs of Indian airlines.”
Aviation ministry sources said the market needed to become more mature before the government allows the entry of a strong airline brand.
22/04/06 Calcutta Telegraph
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