Air policy opening gets qualified welcome

Mumbai/Delhi : The Cabinet on Friday decided to allow foreign air carriers to take up to 49 per cent stake in domestic airline companies, ending five years of dithering in the face of opposition from sections of the political spectrum.
Addressing a press conference after the cabinet meeting, Anand Sharma, commerce minister, said: “Detailed rules for the FDI will be framed by the ministry of civil aviation. However, the chairman and two-thirds of the directors of the company have to be Indians.”
Reacting on the FDI approval, Ajit Singh, the civil aviation minister, completely ruled out Air India, the government-owned carrier, opting for FDI. He said, “The decision sends a clear message for the sector that is under stress. Now, the banks can look at them favourably. The managerial and technical expertise will be available to local airlines, plus everything that goes with this. Code sharing benefit will also be there.”
15/09/12 Business Standard

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