'Investing in loss-making airlines not winning strategy'
A top aviation industry representative has expressed doubts whether allowing foreign airlines to invest in Indian carriers would attract them enough to put in money now, when the domestic industry is in a mess.
By PTI | Updated:
GENEVA: A top aviation industry representative has expressed doubts whether allowing foreign airlines to invest in Indian carriers would attract them enough to put in money now, when the domestic industry is in a mess.
However, he strongly supported the need for further liberalisation of India's FDI policy in aviation as well as slashing of high taxes on jet fuel.
“In today's difficult environment, generally speaking, many airlines are trying to keep their balance sheets strong rather than investing in other airlines. .... Investing in loss-making business is obviously not a winning strategy,” IATA Director-General and CEO Tony Tyler said.
But Tyler made it clear that if investment by foreign airlines was allowed, “then investments from different kind of sources will arrive. ... Certainly, Indian laws are very restrictive on foreign investments in airlines.”
However, he strongly supported the need for further liberalisation of India's FDI policy in aviation as well as slashing of high taxes on jet fuel.
“In today's difficult environment, generally speaking, many airlines are trying to keep their balance sheets strong rather than investing in other airlines. .... Investing in loss-making business is obviously not a winning strategy,” IATA Director-General and CEO Tony Tyler said.
But Tyler made it clear that if investment by foreign airlines was allowed, “then investments from different kind of sources will arrive. ... Certainly, Indian laws are very restrictive on foreign investments in airlines.”
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