Experts have found major faults in the draft aviation policy even as the nodal ministry of civil aviation has decided to take the key document to the Union cabinet in December for approval.
The aviation experts have pointed out that the classification of countries based on their geographical location is at variance with the Chicago convention that requires countries to develop international air transport services on the basis of equality of opportunity.
The other notable flaw, they have highlighted, is in the proposal to allow foreign direct investment (FDI) in Indian airlines to 50 per cent and above.
“The proposed move to increase FDI from 49 per cent to above 50 per cent is an effort to bring more investment into the sector. But, at the same time, it can complicate the thing and trigger fresh bilateral negotiations,” former aviation secretary Ajay Prasad told Financial Chronicle.
Amplifying on what the complication could be, he said: “Once foreign entities take substantial ownership and effective control in Indian airlines, they may not be recognised as Indian carriers unless the existing bilateral air service agreement with the country concerned is suitably negotiated.”
30/11/15 Nirbhay Kumar/mydigitalfc.com
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The aviation experts have pointed out that the classification of countries based on their geographical location is at variance with the Chicago convention that requires countries to develop international air transport services on the basis of equality of opportunity.
The other notable flaw, they have highlighted, is in the proposal to allow foreign direct investment (FDI) in Indian airlines to 50 per cent and above.
“The proposed move to increase FDI from 49 per cent to above 50 per cent is an effort to bring more investment into the sector. But, at the same time, it can complicate the thing and trigger fresh bilateral negotiations,” former aviation secretary Ajay Prasad told Financial Chronicle.
Amplifying on what the complication could be, he said: “Once foreign entities take substantial ownership and effective control in Indian airlines, they may not be recognised as Indian carriers unless the existing bilateral air service agreement with the country concerned is suitably negotiated.”
30/11/15 Nirbhay Kumar/mydigitalfc.com
