India ‘Open’ to Reviewing Airline Ownership Rules, Patel Says

India is “open” to reviewing its policy to consider allowing overseas airlines to own stakes in local carriers, the nation’s Civil Aviation Minister Praful Patel said.
The government will hold inter-ministerial consultations to evaluate any change in the rules, Patel said in New Delhi today, without specifying a timeline. India plans to review the laws regarding airline ownership as growth in Asia’s third-biggest economy spurs rising demand for air travel and carriers seek funds for expansion.
While foreign investors can own stakes in Indian airlines, India more than a decade ago banned overseas carriers from buying into rivals in the world’s second-most populous nation. The government estimates an annual 10 percent growth in domestic air passengers, with as many as 180 million traveling by 2020. Indian companies including Jet Airways Ltd. and Kingfisher Airlines Ltd. have been seeking money for expansion. Jet Airways Chairman Naresh Goyal said in February the airline intends to raise as much as $400 million to help pay for new planes and cut debt. Kingfisher Airlines plans to raise more than $100 million selling global depository receipts, Ravi Nedungadi, chief financial officer of UB Group, the airline’s parent, said on April 7.
02/06/10 Subramaniam Sharma/Bloomberg/Business Week

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Categories: Indian Aviation- In General Jul 2010