There's a lot more needed than 49% FDI says Emirates prez Tim Clark

BEIJING: Emirates, which has been unofficially dubbed India's national carrier, has expressed doubts over the efficacy of the government's attempts to increase foreign investment in aviation, pointing to obstacles such as possible government interference and absence of proper incentives.

In a candid interview to ET, Emirates President Tim Clark also expressed unhappiness over the small increase in foreign equity ownership in airlines, saying 49% does not give management control.

"If we put our money, we would like to have a say in the way an airline is run and 49% can't give that. Emirates as an airline doesn't get additional seats if we were to put money into an Indian carrier. If the government of India gives some incentives with the 49%: a clean balance sheet, no debts, guaranteed firewall against government interference, freedom to procure assets in a free and transparent way... So, there is a lot more needed in addition to 49%... you need to ring-fence the investor," he said.

"Buying into Indian airlines means putting equity into them first. Then one has to have a business plan... it is its implementation in the Indian environment which is a challenge," Clark said.