Saturday, July 29, 2017

Panel led by Arun Jaitley may allow foreign carriers to bid for Air India

Mumbai: The panel headed by Finance Minister Arun Jaitley may take up a proposal that seeks participation of foreign airlines in Air India's stake sale. At present, the government is eying a lucrative deal to resuscitate the ailing Air India. The Union Cabinet has also given in-principle approval to privatisation of national carrier.

A report carried by The Economic Times website cited a senior government official who said that allowing foreign airlines to take part in Air India stake sale was not ruled out. “This (sale to foreign airlines) was one of the options suggested in the presentation made to the ministerial panel by the aviation secretary,” ET quoted the official as saying.

It may be noted that the group of ministers set up to oversee and implement Air India divestment did not nod in negative when the proposal was brought on its table. It also did not object to the idea of a foreign bidder for Air India, the report added.

While a foreign investor can own up to 100 per cent in an Indian airline, an overseas carrier can own only up to 49 per cent in an Indian carrier, according to FDI in aviation rules.
29/07/17 Deccan Chronicle