• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi , Sept. 16

THE Civil Aviation Ministry is not in favour of allowing foreign airlines to pick up a stake in domestic airlines as such a move could provide the former an indirect entry into the Indian skies.

Explaining the thinking in the Ministry of Civil Aviation, senior officials pointed to the fact that there was enough expertise in both the public and private sector airlines within the country to run such a venture without involving foreign airlines.

Meanwhile, the Ministry has indicated that it had no objections to the foreign direct investment (FDI) limit in the sector being hiked to 49 per cent. But till late tonight it was unclear whether the issue of hiking FDI level in the aviation sector would be taken up at the Cabinet meeting scheduled for Friday (September 17).

When asked as to why the Ministry had objections, official sources said that just because some one had huge amounts of funds and were keen to invest in the domestic aviation sector was not reason enough for allowing them to get a footprint in the sector. "Players in the Indian aviation industry have now developed into world-beaters. So where is the need for allowing foreign airlines to acquire a stake in domestic airlines," a senior Government official asked.

When contacted the Minister for Civil Aviation, Mr Praful Patel, said: "Our views are clear. At this juncture, foreign airlines should not be allowed to participate in the domestic sector."

Besides, officials also pointed to the steps which were being taken by the Government to strengthen the two state-owned airlines, Indian Airlines and Air India which were likely to suffer if foreign airlines were allowed into the domestic arena.

More Stories on : Airlines | Foreign Direct Investment

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Norasia nominated as a finalist in Asia logistics awards

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line