Stake in Indian airlines for foreign carriers unlikely for now

New Delhi: Government is unlikely to allow foreign airlines to invest in their Indian counterparts so long as the domestic aviation industry strengthens itself, a top Civil Aviation Ministry official said on Tuesday.
"We want the (Indian aviation) industry to reach a certain level of comfort before allowing any such investment," Civil Aviation Secretary Ashok Chawla said in reply to questions on whether foreign airlines would be allowed to pick stake in Indian carriers.
The government has been of the opinion that allowing foreign carriers to invest in their Indian counterparts, when they were growing, would not be in the interest of the local aviation industry.
However, it has allowed FDI with a cap of 49 per cent and 100 per cent from NRIs in the domestic scheduled passenger airlines. The FDI component has to be from those who are not directly or indirectly connected with airlines.
18/03/08 PTI/Economic Times

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Categories: Foreign Mar 2008, Indian Aviation- In General Mar 2008