New Delhi: Airlines with a majority foreign ownership may not be able to fly international routes from India even though the liberalised norms now allow foreign investors to own up to a 100 per cent stake in domestic carriers.
At present, India has bilateral air service agreements with 109 countries. Many of these countries have a "substantial ownership and effective control" clause. This clause, which is also a condition from the International Civil Aviation Organisation (ICAO), may not permit airlines with a majority foreign ownership to fly abroad from India.
"All that it means is that if you are having more than 49 per cent, there may be an issue in getting the bilateral rights for flying abroad. But if you wish to fly within the country, then there is no bar," said R.N. Choubey, civil aviation secretary.
"We will examine what other countries who are similarly placed are doing and then will take a call," said Choubey.
Analysts said most countries, including the Gulf and the US, restrict bilateral rights to airlines owned and controlled by nationals of a country that has been granted the bilaterals.
Most countries also restrict the ownership of its airlines to its nationals. The US and Canada allow only 25 per cent foreign ownership; Europe and Australia allow 49 per cent foreign ownership, while ensuring that control remains with Europeans or Australians, respectively.
23/06/16 Telegraph
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At present, India has bilateral air service agreements with 109 countries. Many of these countries have a "substantial ownership and effective control" clause. This clause, which is also a condition from the International Civil Aviation Organisation (ICAO), may not permit airlines with a majority foreign ownership to fly abroad from India.
"All that it means is that if you are having more than 49 per cent, there may be an issue in getting the bilateral rights for flying abroad. But if you wish to fly within the country, then there is no bar," said R.N. Choubey, civil aviation secretary.
"We will examine what other countries who are similarly placed are doing and then will take a call," said Choubey.
Analysts said most countries, including the Gulf and the US, restrict bilateral rights to airlines owned and controlled by nationals of a country that has been granted the bilaterals.
Most countries also restrict the ownership of its airlines to its nationals. The US and Canada allow only 25 per cent foreign ownership; Europe and Australia allow 49 per cent foreign ownership, while ensuring that control remains with Europeans or Australians, respectively.
23/06/16 Telegraph
