Indian Government Likely To Allow 25% FDI In Domestic Airlines

Civil Aviation Minister Praful Patel hinted that the Government was considering foreign direct investment or FDI of up to 25% Indian carriers by overseas airlines, reports media.



In other words, the foreign airliner will have no right to block special resolutions in the board, for which an investor needs a 26% voting right.



Airlines, including Kingfisher, have been requesting the Government allowing foreign carriers to take stakes in domestic carriers. For information, the Indian airline industry is estimated to lose close to Rs.10,000 crore this fiscal, reports said.

The report further stated that foreign carriers such as British Airways, Lufthansa, Emirates, Singapore Airlines and Virgin Atlantic are understood to have shown interest in Indian carriers in the recent past.



Kapil Kaul, Chief Executive Officer (Indian sub-continent) of global aviation consultancy firm, Centre for Asia Pacific Aviation, reportedly said the ability for foreign airlines to invest might provide a much-needed lifeline for an industry that desperately needs cash.