Emirates awaits FDI invite

Dubai: West Asian carrier Emirates wants to pick up a stake in an Indian carrier even as the government deliberates on the merits of relaxing the caps on foreign direct investment in airlines.
“Emirates will consider picking up a stake in domestic (Indian) carriers if the government allows such a move,” Majid al Mualla, senior vice-president (commercial operations), West Asian and Indian Ocean region, told The Telegraph.
According to al Mualla, “India is a growing aviation market which cannot be ignored as its economy is booming. The middle class is growing at a rapid pace and the aviation sector has a good prospect in the country.”
Though it allows 49 per FDI in aviation, the Indian government has barred the entry of foreign carriers because of security concerns.
Besides, Indian carriers, which did not fare well in the past two years, were seen to be susceptible to hostile takeovers.
17/07/10 R Suryamurthy/The Telegraph

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Categories: Foreign Jul 2010