FDI in aviation: Allow foreign airlines to invest 49% in domestic carriers, suggests CII

New Delhi: Industry body CII today suggested that the government liberalise the FDI policy to allow foreign airlines to invest up to 49 per cent in cash-starved domestic air-carriers.
"A liberal FDI regime would pave the way for foreign airlines to participate in India's aviation sector and strengthen it. A comprehensive policy direction is needed to address the prevailing crisis and lay a path for future growth," CII said in a statement.
It said the aviation sector in the country is going through a tumultuous phase and the policy should create an enabling framework for a safe, secure and investor-friendly environment.
A liberal FDI regime would also instill confidence among foreign investors, including overseas hedge funds and private equity groups, in domestic carriers, it said.
Currently, the government allows foreign direct investment (FDI) up to 49 per cent in Indian carriers by non-airline players, but bars foreign airlines from investing in them, primarily due to security reasons.
05/02/12 PTI/Economic Times

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