Decision soon on foreign stake in local airlines

Singapore: India will decide very soon on a plan to allow overseas airlines to purchase a stake in local carriers, opening the doors for Singapore Airlines Ltd, Virgin Atlantic Airways Ltd and other carriers to invest in the country. The government may permit overseas airlines to own stakes of up to 25%, Arun Mishra, a joint secretary in the civil aviation ministry, told reporters in Singapore on Wednesday.
That would reverse at least a decade-old rule that banned non-Indian airlines from owning shares of domestic carriers.
With global air traffic plunging amid an economic recession, India’s move may give foreign airlines a slice of a market that’s set to surge ninefold in the two decades to 2026, according to Airbus SAS. The plan will also gives domestic carriers such as Jet Airways (India) Ltd and SpiceJet Ltd access to cash and expertise amid a record $2 billion (Rs9,760 crore today) industrywide loss last year.
12/02/09 Bloomberg/Livemint

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Categories: Foreign Feb 2009, Indian Aviation- In General Feb 2009