Move to let foreign airlines pick up 49% in Indian carriers

New Delhi: In what could breathe life into the domestic aviation industry grappling with huge losses, the government will shortly consider a proposal to allow foreign airlines pick up to 49 per cent equity in Indian carriers. This is despite stiff opposition from the country’s largest private airline Jet Airways.
A Committee of Secretaries, chaired by Cabinet Secretary K M Chandrasekhar, will take up the proposal on November 17, an official told The Indian Express. At present, the government allows 49 per cent foreign direct investment in domestic carriers but bars foreign airlines from holding any stake directly or indirectly.
Initially, the Civil Aviation Ministry had recommended that foreign airlines be allowed to invest 25 per cent in domestic airlines.
06/11/09 Smita Aggarwal/Indian Express

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