Qatar Airways bats for 26% FDI in Indian carriers

Kolkata: If the UPA government allows 26 per cent stake by foreign airlines in Indian carriers, it would go a long way in drawing the latter out of the financial mess they are in, thereby taking domestic aviation industry to the next level, said Akbar Al Baker, CEO, Qatar Airways.
Al Baker’s comment came in the wake of the Union Commerce Ministry’s recently proposed 26 per cent foreign direct investment (FDI) by foreign airlines in domestic carriers.
At present, foreign companies, other than foreign airlines, are allowed to invest up to 49 per cent in the domestic passenger airlines. Non-resident Indians can invest upto 100 per cent.
Al Baker, who was here in connection for launch of Qatar Airways’ flights from Doha to Kolkata, said that carefully planned mergers and acquisitions and FDI inflows are the way forward for cash-starved India carriers. “It is a very good move by the government. Although the ideal cap for FDI would have been 49 per cent as it would have enabled the foreign players have a greater say in policy matters. The airline industry is very capital intensive and I don’t think the private Indian carriers have the funds to achieve the growth they desire,” he said.
23/11/11 Ritwik Mukherjee/mydigitalfc.com

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Categories: Foreign Nov 2011, Indian Aviation- In General Nov 2011