newstodate.aero
Nov 16, 2011 (newstodate): The Indian government is cautiously moving towards easing the reins on foreign investments in the country´s airline industry.
A proposal is now on the table for allowing foreign investors to take a stake in Indian carriers, but it has still not been decided if the cap will be at 24 or 26 percent of the shares.
So far, Indian civil aviation remains bound by efficient red tape in an effort to protect national carriers against foreign competition.
One blatant example of this is the ban on operations on scheduled services with Airbus A380 aircraft by carriers including Emirates and Lufthansa.
Industry sources are not convinced if any foreign investors would be attracted by obtaining only minority stakes like 24 or 26 percent in Indian carriers, leaving them little power over strategical and management issues.
A proposal is now on the table for allowing foreign investors to take a stake in Indian carriers, but it has still not been decided if the cap will be at 24 or 26 percent of the shares.
So far, Indian civil aviation remains bound by efficient red tape in an effort to protect national carriers against foreign competition.
One blatant example of this is the ban on operations on scheduled services with Airbus A380 aircraft by carriers including Emirates and Lufthansa.
Industry sources are not convinced if any foreign investors would be attracted by obtaining only minority stakes like 24 or 26 percent in Indian carriers, leaving them little power over strategical and management issues.