Dubai: Etihad Airways plans to “carefully examine” India’s new aviation investment rules that allow complete ownership of domestic Indian airlines by foreign companies.
India has recently announced a series of major changes to its aviation sector, including rules surrounding foreign investment, in effort an to encourage investment and long-term development.
Etihad, who owns 24 per cent of Indian carrier Jet Airways, told Gulf News it “is a committed, long-term partner and investor in India.” The Abu Dhabi-based airline in 2013 became the first foreign airline to invest in an Indian carrier.
Under the new rules, a foreign company can wholly own a domestic Indian carrier, an increase from the previous 49 per cent cap, though foreign airlines are still limited to holding a maximum stake of 49 per cent.
Still, there are ways under the new rules for foreign airlines to get around that cap. Last year, state-owned Qatar Airways tried to use its country’s sovereign wealth fund, the Qatar Investment Authority, to buy into Indian budget carrier IndiGo during its initial public offering after Indian laws blocked the airline from taking part. The transaction failed but only because the sovereign wealth fund did not have enough time to complete the necessary approvals.
21/06/16 Alexander Cornwell/Gulf News
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India has recently announced a series of major changes to its aviation sector, including rules surrounding foreign investment, in effort an to encourage investment and long-term development.
Etihad, who owns 24 per cent of Indian carrier Jet Airways, told Gulf News it “is a committed, long-term partner and investor in India.” The Abu Dhabi-based airline in 2013 became the first foreign airline to invest in an Indian carrier.
Under the new rules, a foreign company can wholly own a domestic Indian carrier, an increase from the previous 49 per cent cap, though foreign airlines are still limited to holding a maximum stake of 49 per cent.
Still, there are ways under the new rules for foreign airlines to get around that cap. Last year, state-owned Qatar Airways tried to use its country’s sovereign wealth fund, the Qatar Investment Authority, to buy into Indian budget carrier IndiGo during its initial public offering after Indian laws blocked the airline from taking part. The transaction failed but only because the sovereign wealth fund did not have enough time to complete the necessary approvals.
21/06/16 Alexander Cornwell/Gulf News
