FDI in Indian carriers only after aviation industry stabilizes: civil aviation secretary
19 Mar 2008
New Delhi: Foreign airlines will be allowed to invest in Indian carriers only after a certain level of comfort is reached by the domestic aviation industry, Ashok Chawla, secretary, ministry of civil aviation (MCA), said Tuesday.
"We want the industry to reach a certain level of comfort before allowing any such investment," Chawla said in reply to questions on whether foreign airlines would be allowed to pick up a stake in Indian carriers.
The government has stopped short of allowing foreign carriers to invest in their Indian counterparts, at this nascent stage, saying that it would not be in the interest of the local aviation industry. It has, however, allowed FDI with a cap of 49 per cent, and 100 per cent from NRIs, in domestic scheduled passenger airlines, provided the FDI component does not come from those who are directly or indirectly connected with airlines.
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