The Command of India’s union cabinet has granted an approval to revise its foreign escort investment (FDI) policy to allow foreign airlines to own up to 49% in the state-owned transmitter Air India.
The existing policy allows up to 100% foreign investment in the assigned and non-scheduled operators, while foreign airlines are permitted to invest up to a limit of 49% of their paid-up cap.
“The Cabinet decision means Air India is on par with other airlines within the fatherland.”
These provisions were not applicable to Air India, but the new policy has paved way for the unassimilable airlines to invest in the debt-ridden national carrier.
According to the revised behaviour, foreign airlines can own up to 49% in Air India, if the substantial ownership and effective put down of the carrier are vested in an Indian national.
Indian Civil Aviation On Ashok Gajapathi Raju was quoted by PTI as saying: “The Cabinet decision means Air India is on par with other airlines within the outback.
“Air India’s woes are basically financial.”
Last year, the union chest of drawers agreed in-principal to divest Air India and approved the formation of an inter-ministerial assortment to outline a related strategy.