Latest Aviation News Air transport INDIA ALLOWS 49% FOREIGN INVESTMENT IN STATE-RUN AIRLINE

India allows 49% foreign investment in state-run airline

AFP
10/01/2018 | 268 words
India allows 49% foreign investment in state-run airline
© Le Journal de l'Aviation - all rights reserved

Foreign airlines will be able to buy up to 49 percent of Air India under new rules approved by the government on Wednesday to boost the debt-laden flag carrier.

Once the country's monopoly airline, Air India has slowly lost market share to new low-cost private players in one of the world's fastest-growing airline markets.

The government said last June it was open to selling a stake in the state-owned airline, which has developed a reputation for delays, cancellations and poor service.

On Wednesday the cabinet rubber-stamped plans to allow foreign airlines to invest up to 49 percent in Air India, subject to government approval.

That was part of a series of moves to relax restrictions on foreign investment.

Prime Minister Narendra Modi's right-wing government has sought to encourage foreign companies to invest in India since coming to power in 2014.

The cabinet also cleared plans to automatically allow 100 percent foreign investment in single-brand retailers. Previously, this required special government approval.

Air India ran losses for nearly a decade after a botched merger in 2007 and has debts of around $7.67 billion according to government figures.

It has received a $5.8 billion in bailout funds from the government but still needs more working capital to turn it around.

India has the world's fastest growing passenger airline industry, expanding at an annual rate of around 20 percent.

Experts say India's aviation sector holds vast untapped potential, with just 100 million of its 1.2 billion people taking to the skies in 2016.

 
 
 
Related articles

Indian government grounds Air India sale plans

Embattled Air India seeks 'urgent' loan

Jet Airways rules out Air India bid

In world first, Air India crosses Saudi airspace to Israel

19/07 AFI KLM E&M steps up a gear on CFM's LEAP
19/07 Sabena technics finally gets back on-board C-130Hs
19/07 Airbus fetes first flight of its new 'whale in the sky'
19/07 AirAsia announces $30bn deal for 100 Airbus planes
19/07 With CSALP, Airbus is also taking over the support of the A220 family
16/07 Airbus strikes deals in China, India amid Brexit concerns
Featured Content
How Thai Airways will Expand Rolls-Royce's Trent Engine Service Network
China embarks on board aircraft recycling
AMAC Aerospace makes even more of a mark on the worldwide MRO and VVIP completion stage
Daher uncovers data mining with Me&MyTBM
Christophe Bénaroya: the Toulouse Business School Aerospace MBA will be remodelled
 
LATEST NEWS   CIVIL AEROSPACE   MRO & SUPPORT   AIR TRANSPORT   DEFENCE   SPACE
Follow us
© 2018 Le Journal de l'Aviation - All rights reserved

By continuing to use the site, you agree to the use of cookies. You can find out more by following this link.  OK  Find out more