The Indian Government has approved plans to allow foreign investors to take stakes of up to 40% in domestic airlines. The entry of foreign carriers into domestic services has been put on hold until India has completed its air-service modernisation programme, however.
Although the Government has agreed in principle to allow foreign equity holdings, it warns that any investments will only be approved on a case-by-case basis.
India's civil aviation minister, Ghulam Nabi Azad, also says that the opening up of the domestic market to foreign carriers will have to wait until the country completes its programme of infrastructure improvements such as runway extensions and new terminal buildings.
Source: Flight International
