Indian airline investors nervously await the outcome of a high level government discussion on the potential easing of foreign airline ownership restrictions in local carriers. Reports suggest the government may be open to up to 49% stakes for foreign airlines, with an initial 25% cap.
Shares in Kingfisher Airlines - one of the greatest potential beneficiaries of an easing of the ownership rules - fell back almost 10% yesterday. Kingfisher is in talks with Air France-KLM for a possible 20-25% stake sale. Jet Airways shares fell 1.5% and SpiceJet lost 6%.
Asia Pacific selected airlines daily share price movements (% change): 22-Jan-09