Foreign airlines would not pick up stakes in cash-strapped Indian carriers till steps are taken to stem the high costs of aviation operations in India, International Air Transport Association (IATA) chief, Tony Tyler, has said.
“No, I don’t think it (allowing foreign airlines to invest in Indian carriers) is a game-changer but it is a good thing. But it will not solve the problems of Indian aviation. It certainly is a step in the right direction but it is not the panacea that some believe it is,” the director general and CEO said at his operational headquarters here.
“As long as high taxes prevail, high airport costs and congestion, and poorly developed air navigation (services) means more congestion, high cost of operations exist, you are not going to get a lot of people to invest in airlines.”
He was replying to questions on the government’s recent decision to liberalise FDI policy in aviation, allowing foreign carriers to pick up a maximum of 49 per cent equity in their Indian counterparts. Observing there were restrictions on investing in airlines around the world which was “a problem for the industry”, Tyler said, “Any move that we see in liberalising, is a good thing.
26/12/12 PTI/Business Standard
