FDI in aviation: Ministry may allow foreign airlines to hold up to 49% in domestic carriers - The Economic Times: "At present, foreign carriers such as British Airways, Singapore Airlines and Emirates are banned from directly pumping money into the aviation sector, although financial and other non-airline investors can invest up to 49% in Indian airlines.
The aviation ministry had traditionally been opposed to allowing international airlines to invest in local carriers, but had relaxed its opposition, partly as a result of hectic lobbying by some loss-making players such as Kingfisher Airlines and GoAir. After first saying global carriers should not be allowed to hold beyond 24%, the ministry had relented to allow them to pick up to 26% stake.
"We may further relax our stance on allowing foreign carriers to invest in Indian airlines. There is no difference between 26% and 49% because the rights of the shareholders remain the same at these two different levels of shareholding. But if we do allow 49%, we will impose some restrictions," said a senior civil aviation ministry official, on condition of anonymity. "
The aviation ministry had traditionally been opposed to allowing international airlines to invest in local carriers, but had relaxed its opposition, partly as a result of hectic lobbying by some loss-making players such as Kingfisher Airlines and GoAir. After first saying global carriers should not be allowed to hold beyond 24%, the ministry had relented to allow them to pick up to 26% stake.
"We may further relax our stance on allowing foreign carriers to invest in Indian airlines. There is no difference between 26% and 49% because the rights of the shareholders remain the same at these two different levels of shareholding. But if we do allow 49%, we will impose some restrictions," said a senior civil aviation ministry official, on condition of anonymity. "
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