Branson lobbies for domestic Indian airline

Sir Richard Branson yesterday said he was renewing a push for government permission to set up a domestic carrier in India to tap into one of the world's fastest growing aviation markets.
Sir Richard's lobbying effort comes at a strategic moment for the industry in India.
Overseas investors are allowed to own up to 49 per cent of a domestic Indian airline but foreign carriers are not permitted to own any stake directly or indirectly.
Some analysts believe the government may consider permitting foreign airlines to take small strategic stakes under the new policy, a move that could benefit Virgin and others looking for a foothold in India.
"If Virgin comes in as a joint venture with an existing company then it could be positive for the industry," said one equities analyst in Mumbai. Gurvinder PS Arora, senior manager at KPMG, said recent signals from the cabinet indicated the government was not ready to change the policy. Any successful attempt by Sir Richard to win access to the Indian market would be a coup for Virgin, which has domestic services in the US, Australia and Nigeria.
22/01/08 Joe Leahy in Mumbai/Financial Times, UK

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Categories: Foreign Jan 2008, New Jan 2008