India may open up to foreign investment
23 / 05 / 2012
IN a bid to help struggling domestic airlines the Indian government is considering allowing foreign stakeholders to invest in India’s aviation industry.
It has already lost R 80bn(US$1.6bn) in the financial year ending this March.
Civil aviation minister Praful Patel said the government was currently in consultation on the issue and a timeframe could not yet be predicted for any decision.
India currently prohibits any foreign investment in Indian airlines but allows direct holdings of up to 49 per cent.
However, Vijay Mallya (above right), chairman and chief executive officer of Indian carrier Kingfisher, has asked the government to allow foreign investment in Indian airlines of up to 25 per cent.