Ministry may oppose 49% FDI in aviation sector

NEW DELHI: Close on the heels of the decision to halt privatisation of Indian Airlines and Air-India, the civil aviation ministry is planning to oppose the move to allow 49% airline equity in domestic carriers.
Sources said the civil aviation ministry was gearing up to express its reservations. The resistance is, however, likely to be rejected as it has not found supporters yet, they added.
Since the decision to liberalise FDI in airlines and airports was part of a larger reforms agenda that included opening up telecom and petroleum sectors too, the civil aviation ministry’s opposition would stand out as an isolated case.
Airline industry representatives feel the government should not hesitate to open up the domestic aviation sector.
Competition would widen and consumers would also see benefits of international standard service.