Govt may let foreign carriers buy stake in domesticairlines airlines

New Delhi: The government may finally allow foreign airlines to acquire up to 26 per cent stake in domestic passenger airlines. The foreign direct investment limit in domestic carriers might also be hiked to 74 per cent from 49 per cent now.
According to government functionaries, the civil aviation ministry has already mooted a proposal to this effect. They said the move had the baking of the finance and the commerce & industry ministries. Civil aviation minister Praful Patel had recently indicated that foreign airlines might be allowed in domestic cargo operations.
The government sources, however, said there would be managerial and operational restrictions on foreign airlines.On the other hand, the present restriction on the number of foreign members on an airline board to a third may be relaxed, he added.
13/03/07 Bipin Chandran/Indian Express

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Categories: Foreign Mar 2007, General Aviation Mar 2007