Aviation ministry proposes foreign airline FDI 26% in local carriers

Mumbai: The aviation ministry has proposed allowing foreign airlines to invest under 26 percent in Indian carriers and the final decision will be made by the cabinet, civil aviation minister Vayalar Ravi told news channel CNBC TV18.
India allows up to 49 percent foreign investment in Indian carriers but bars foreign carriers from owning stake.
With most carriers suffering losses due to high costs and debt in a crowded and competitive aviation market, the government is now mulling a change in regulation.
“FDI (foreign direct investment) is acceptable till a limited point. That limited point is still under debate,” Ravi said in the televised interview.
“The proposal of my ministry is less than 26 percent,” he said, adding the final decision will be taken by the cabinet. He did not give a timeline.
The Department of Industrial Policy and Promotion and the Civil Aviation Ministry differ on the quantum of stake that foreign airlines be allowed to pick up, government sources told Reuters in October.
29/11/11 Times of India

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~ by anand213 on December 1, 2011.

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