Praful against hasty hike in aviation FDI cap

New Delhi: Civil aviation minister Praful Patel said today at the India Economic Summit that the plan to hike FDI in the aviation sector beyond the current 49 per cent should wait a little so that Indian carriers can scale up. “We want to give our own Indian carriers some time to scale up first before allowing more FDI in aviation, which is currently 49 per cent,” he said.
Helped by intense competition and the burgeoning of low cost carriers, the Indian aviation industry is growing at an annual rate of 25-30 per cent. However, the growth has generated the need for improving aviation services like ground-handling, maintenance and training, according to analysts. The industry has been waiting for some time for now for a further liberalisation of the FDI policy to cater to this need.
Observing that there is a need for an IPO as this would make the national carrier financially independent, Patel said the plan for an IPO would depend on various factors including the burden of rising Aviation Turbine Fuel (ATF) prices.
05/12/07 Indian Express

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Categories: Foreign Dec 2007, General Aviation Dec 2007, New Dec 2007