Aviation sector FDI norms under review
01 Nov 2011
New Delhi: It now seems likely that the Government of India may allow foreign airlines to acquire a minority stake in domestic airlines. According to the secretary, ministry of civil aviation, Dr Nasim Zaidi, the Government is reviewing the existing Foreign Direct Investment policy framework for the domestic aviation sector.
As of now, foreign airlines cannot own a stake either directly or indirectly in a domestic airline.
The Government has also constituted a committee to look at the existing route dispersal guidelines to enhance connectivity, particularly to Tier II and III cities. The route dispersal guidelines govern the number of cities to which a domestic airline has to have regular operations.
Dr Zaidi was addressing a conference on aviation organised by the Confederation of Indian Industry (CII).
It is also being given to understand that a remote area connectivity fund has been proposed by the ministry of civil aviation in the forthcoming Twelfth Five-Year Plan.
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