The relaxation of the FDI cap in the aviation sector has come as a shot in the arm for regional carriers Air Pegasus and FlyEasy, which have been aiming to sell a stake to foreign airlines.

A top FlyEasy official told BusinessLine that Air Arabia and two other carriers are in negotiations with the airline to pick up a substantial stake. Meanwhile Air Pegasus is learnt to be in discussions with Emirates and another Gulf carrier.

The FlyEasy official said the airline has completed three out of four AOP (air operator permit) requirements to launch an airline.

“We have been waiting for a strategic partner and the new norm allows us to speed up the process,” he said.

Amber Dubey, Partner and India head of aerospace and defence at KPMG, said the issues around ownership and control are now closed. “Foreign airlines can now focus on customers and the competition rather than wasting time on legal and regulatory issues,” he said.

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