THE Indian government has decided to allow up to 49 per cent foreign direct investment (FDI) by international airlines in Indian carriers.
Foreign airlines were previously barred from investing in Indian carriers, although up to 49 percent FDI by stakeholders unrelated to airline businesses was permissible.
The development comes as a welcome relief for most Indian airlines, which have been reeling from a combination of high state taxes, rising airport charges and fluctuating fuel costs.
Meanwhile, SpiceJet, which operates to 41 destinations across South Asia and the Middle East, is in talks with a Gulf-based airline for direct investment.
Neill Mills, CEO of SpiceJet said: “There have been preliminary discussions whether there is any interest on both sides and the confirmation is, yes, there is. Any future tie-up would produce reciprocal benefits.”
