Allow foreign airlines to invest in domestic carriers: Mallya

Mumbai: Liquor baron Vijay Mallya, promoter of Kingfisher Airlines, has put in a formal request to the civil aviation ministry to permit foreign carriers to invest directly in his airline and other domestic carriers. Mallya has said the government should allow foreign carriers up to 25 per cent equity in domestic airline companies.
This is the first time an airline has made such a request to the ministry after the Tata-Singapore Airlines deal fell through in 2001 (Singapore Airlines was to have a 49 per cent share in the joint venture).
The Indian government does not allow direct or indirect investments in domestic airlines, a move that was meant to protect domestic carriers. Mallya’s request marks a sharp change from domestic players’ stand.
In an exclusive interview to Business Standard, Mallya said, “If foreign companies are allowed to invest directly in other Indian sectors, why should civil aviation not be opened up for such investments? I have requested the government to consider this policy change and allow foreign carriers to have a strategic investment in airlines here.”
Investments by foreign carriers would be a boon to domestic players, Mallya said. “All airlines, whether it is Jet Airways, Air India or Kingfisher Airlines, will benefit from such a move. The government should let it happen now,” he added.
26/09/08 Manisha Singhal/Business Standard

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Categories: Indian Aviation- In General Sep 2008, Kingfisher Sep 2008