Indian Government Set To Renege on Commitment To Allow Foreign Investment in Airlines | Aviation International News

Indian Government Set To Renege on Commitment To Allow Foreign Investment in Airlines

Politics appears to be standing in the way of liberalization of the Indian airline sector.

The Indian government forced Jet Airways to buy back the 40-percent equity ownership once held by Arabian Gulf investors.

By Neelam Mathews

April 30, 2012

As highly taxed fuel, mounting debt and aggressive ticket pricing stifle the fledgling airline industry in India, the government seems ready to renege on its promise to allow foreign direct investment (FDI) in the country’s carriers. Current rules do not permit foreign airlines to invest in domestic carriers, although non-aviation-related investors can hold up to a 49-percent stake.

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