The Hindu Business Line : `No change in foreign airlines stake policy'

"There has been no change in the Government's thinking on not allowing foreign airlines to pick up a stake in the domestic aviation sector," said the Minister for Civil Aviation, Mr Praful Patel, when asked whether the civil aviation policy would allow foreign airlines to pick up a stake in domestic carriers.

The civil aviation policy, which has been in the making for some time, has now been finalised and is expected to be sent to the Union cabinet for final approval soon.

Last year the Planning Commission, in its mid-term appraisal of the Tenth Five plan, had suggested a review of the current rules that debar foreign airlines from picking up an equity stake in domestic air transport operations.

The Government earlier allowed foreign airlines to pick up a stake in domestic airlines.

However, the policy was reversed in 1996 and some foreign airlines, including Kuwait Airways, which had a share in Jet Airways, sold their stake.

The Minister indicated that the civil aviation policy would focus on a variety of issues including promoting regional connectivity and making air travel more affordable.

"The policy will look at a variety of issues including improving connectivity not only between metro and non-metro airports but also with secondary airports. It would look at creating an aviation grid for the entire country," said Mr Patel.