Dubai-based Emirates, the world’s largest airline by international traffic, won’t invest in Indian carriers unless the government there gives outside investors ultimate control, President Tim Clark said in an interview.
The imminent removal of a ban on foreign stakes won’t in itself be enough to persuade Emirates to bid given the limited influence on offer versus the poor financial records of Indian airlines and the prices likely to be demanded, Clark said today.
“Part of the deal would be a requirement to do certain things,” Clark said. “If we put money into an Indian carrier and then said we wanted to take down the labor force by 50 percent would they let us do it? No. If we wanted to drop airports that were uneconomic, would they let us? Probably not.”
India may delay a decision to allow foreign airlines to buy 49 percent of local operators until the parliamentary session ends on May 22, a civil aviation ministry official said April 20. Emirates, which will next month report a decline in annual earnings, according to Clark, has avoided major airline holdings since selling a stake in SriLankan Airlines back to the island’s government in 2010 following a failed a 10-year investment.
24/04/12 Andrea Rothman/Bloomberg
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment