India may allow foreign airlines to hold stakes in Indian carriers

Airline Industry Information, April 12, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Foreign airlines could be allowed to acquire stakes in Indian airlines.

The current rules may reportedly be changed to allow foreign airlines to invest in Indian carriers. At the moment foreign companies, but not airlines, are allowed to hold stakes of up to 49% in Indian airlines, according to The Associated Press.

The Indian federal aviation ministry has prepared a proposal, under which rules would be changed to allow foreign airlines to acquire stakes, according to The Financial Express. The proposal will soon be submitted to the cabinet, said the civil aviation minister Praful Patel.

The minister has reportedly said that he hopes the change would step into force by the end of May this year.

((Comments on this story may be sent to aii.feedback@m2.com))