India permits 100% foreign investment in airlines
The Indian government has announced that foreign investors can now take full ownership of local airlines, the Business Standard reports.
The limit of FDI in Indian carriers has been raised to 100% from the previous 49%, however the cap on investment by overseas airlines remains at 49%. In addition, overseas companies will now be able to invest 100% in “brownfield” airport projects in India.
The relaxation of FDI rules in 2012 saw Etihad, AirAsia and Singapore Airlines all invest in India. At present Etihad owns 24% of Jet Airways, while AirAsia and Singapore Airlines hold 49% stakes in AirAsia India and Vistara respectively.
The newspaper reported aviation experts as welcoming the policy, although they were cautiously optimistic. Some stated that the risks associated with the Indian aviation sector could deter investors.
“While the increase in FDI for aviation is welcome as it will allow flexibility, we are unlikely to see investors suddenly rushing to invest in airlines just because the cap of 49% has been removed,” Peeyush Naidu, partner at Deloitte India, told the Business Standard.
They also suggested that with non-airline investors being allowed to own 100% of Indian carriers, foreign airlines could form joint ventures to set up new airlines in the country.
News Source: http://www.traveldailymedia.com/ & Business Standard
You might also like
Airlines run out of flight numbers, DGCA warns safety at risk
The boom in aviation in India has given rise to a peculiar problem — airlines are running out of flight numbers. With a growing number of flights and too few
One&Only Dubai welcomes guests to celebrate Ramadan in true Arabic tradition
This Ramadan, guests and visitors alike can experience the very best of Arabian hospitality at One&Only resorts in Dubai. One&Only Royal Mirage, the chic and buzzing beach resort overlooking Palm
Back by Popular Demand: THRILLER LIVE, a Sensational Celebration of the Music of Michael Jackson, Returns to The Parisian Macao
Concert commemorating the life of the Prince of Pop back at The Parisian Theatre from April 28 – Sept. 3, 2017; THRILLER LIVE Package available THRILLER LIVE, a spectacular theatrical