India expected to approve foreign airline investment

The Indian government is expected this week to clear direct investment in Indian airlines by foreign carriers.

The Times of India and other media outlets reported that the approval is likely to come at a cabinet meeting Thursday. Struggling Indian carriers, such as Kingfisher Airlines, have said that foreign airline capital would provide a much-needed boost to the industry.

Civil aviation minister Ajit Singh earlier this year expressed his support for a proposal to allow foreign airlines to own up to a 49% stake in Indian carriers, saying it would “help the [domestic airline] sector that is in financial stress”.

Foreign direct investment (with a 49% cap) in Indian airlines is currently allowed, but foreign airlines aren’t allowed to invest at all.

IATA DG and CEO Tony Tyler last month called for serious reforms in Indian civil aviation policy .

Article Source : ATW Daily News