Airlines looking abroad will need local management

New Delhi: The government may be considering a proposal to allow foreign airlines to make equity investment in Indian carriers, but it has laid down stringent ownership norms for domestic carriers wanting to fly overseas.
The aviation regulator, Director General of Civil Aviation, on Thursday specified that permissions for international operations may become hard to come by unless management control lies with Indian nationals.
As per the DGCA checklist, only airlines in which substantial ownership and effective control lies with either the government or with Indian nationals may be designated as international carriers.
“In addition to the ownership of the major part of the assets of the designated airline, (Government of India or Indian nationals) should also have effective control in the management of the designated airline and ownership and effective control of the major part of the fleet of aircraft and equipment of the designated airline,” the aviation regulator said.
According to aviation industry veterans, though these norms were loosely in place earlier too, the stipulation till now has been that 2/3rd of the directors on the airline’s board should be Indian. It does not specifically talk about management control being in Indian hands.
06/08/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Foreign Aug 2010, Indian Aviation- In General Aug 2010