Foreign airlines find ally

New Delhi: The Planning Commission is supporting the finance ministry in allowing foreign airlines pick up stakes in domestic aviation companies.
The finance ministry favours a higher foreign direct investment limit in aviation than the present 49 per cent.
It also wants equity investments by foreign airlines, at least as minority partners.
North Block feels foreign airlines can bring not only the much-needed funds but also technical expertise in the aviation sector.
A group of ministers has been formed on the proposed civil aviation policy after differences arose over foreign investments and other issues.
Planning Commission officials said the body was expected to support the finance ministry on the issue and had already prepared internal policy papers.
However, the civil aviation ministry, backed by established players such as Jet Airways and Air India, feels foreign airlines are interested in India merely to feed global routes.
Support for foreign airlines has come from smaller players such as SpiceJet which are facing mounting pressure on their bottomlines.
19/08/07 Jayanta Roy Chowdhury/The Telegraph

To Read the News in full at Source, Click the Headline

Categories: Foreign Aug 2007, General Aviation Aug 2007