Jet Air chief objects to foreign airlines acquiring stakes in domestic carriers

New Delhi: The Naresh Goyal-promoted Jet Airways, the country's second-largest private airline by the market share, is opposed to the government's plan to allow foreign airlines to invest in domestic carriers. His view is in stark contrast to those expressed by Kingfisher Airlines promoter Vijay Mallya, who has advocated foreign direct investment (FDI) by global carriers.
"Do you want Indian companies to be taken over by foreign companies. Don't you feel proud to be Indian," Mr Goyal told ET, when asked about his views on the issue.
The civil aviation ministry recently proposed allowing foreign airlines to buy up to 25% in domestic airlines. The proposal came after investors and bankers showed reluctance to lend to the industry. The domestic aviation industry may have lost nearly Rs 10,000 crore in 2008-09, mainly due to spiralling aviation fuel prices and excess capacity.
Last week, aviation minister Praful Patel said: "FDI is an ongoing process. I do not think we are averse to opening up the sector on a gradual or constant basis...In our previous regime, we had visualised the situation where foreign carriers could also invest. It may not happen overnight, but it may happen eventually."
Existing guidelines allow foreign entities to invest up to 49% in domestic airlines. They don't allow foreign airlines to pick up equity in local carriers.
02/06/09 Economic Times

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Categories: Foreign Jun 2009, Jet Airways Jun 2009