Ministry may allow foreign airlines to hold up to 49% in domestic carriers

New Delhi: The civil aviation ministry is likely to drop its opposition to higher investment by foreign airlines in the aviation sector and agree to let them hold up to 49% in domestic carriers, handing out a possible lifeline to cash-strapped airlines.
At present, foreign carriers such as British Airways, Singapore Airlines and Emirates are banned from directly pumping money into the aviation sector, although financial and other non-airline investors can invest up to 49% in Indian airlines.
The aviation ministry had traditionally been opposed to allowing international airlines to invest in local carriers, but had relaxed its opposition, partly as a result of hectic lobbying by some loss-making players such as Kingfisher Airlines and GoAir. After first saying global carriers should not be allowed to hold beyond 24%, the ministry had relented to allow them to pick up to 26% stake.
07/01/12 Devesh Kumar & Anindya Upadhyay/Economic Times

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Categories: Foreign Jan 2012, Indian Aviation- In General Jan 2012