Plan to let foreign carriers pick up 26% in local airlines in a flat spin

New Delhi: With the proposal to open up multi-brand retailing to foreign direct investment (FDI) apparently put on the back burner, the government is taking cautious steps to form a consensus on its plan to allow foreign airlines to pick up stake in domestic carriers.
According to sources, not just the Department of Industrial Policy and Promotion (DIPP), which proposed the easing of FDI policy for aviation sector, but also the ministry of home affairs as well as the Planning Commission, that had hailed the department’s draft Cabinet proposal, have turned wary.
The finance ministry is yet to put on record its views on the matter, although, as FE had reported earlier, the ministry was veering around the view that the DIPP proposal could be supported.
The DIPP had proposed to allow foreign airlines to pick up 26% equity in the domestic carriers considering the cash crunch faced by the industry.
05/12/11 Financial Express

To Read the News in full at Source, Click the Headline

Categories: Foreign Dec 2011, Indian Aviation- In General Dec 2011, New Dec 2011