In what could be a sigh of relief for the cash-trapped Indian airlines, the government is likely to take up a decision on the proposal of foreign airlines buying a 49 percent stake in local carriers.
The move will attract much-needed investment for the country’s troubled aviation industry.
In recent past, Indian carriers, headed by Vijay Mallya’s Kingfisher Airlines, have suffered one of the biggest financial crises they had to suffer, mainly due to high fuel and interest costs. Major carriers in the country including the big three, Kingfisher Airlines Ltd., Jet Airways (India) Ltd. and SpiceJet Ltd. had posted losses during the first three quarters of the financial year ended March 31.
Due to this financial crisis of the airlines, investors across the country had been discouraged from putting in money in the sector. Foreign airlines are the only potential investors, though they are currently barred from investing in Indian carriers.
–Agencies