16-Nov-2011 2:24 PM

Kingfisher Airlines interested in foreign airlines as equity partner

Kingfisher Airlines Chairman Vijay Mallya stated he is interested in having a foreign airline as an equity partner (DHNS/Business Standard/Economic Times/Business Times/Hindustan Times, 15-Nov-2011). The carrier has appealed to the government to change its policy to allow foreign airlines pick up stakes in Indian aviation companies. “It makes no sense. When the government allows 100% FDI (foreign direct investment) in airport companies, why should airlines be discriminated against?” Dr Mallya said. He continued: "The government should consider allowing foreign direct investment (FDI) in aviation and reiterated that the company cannot afford to fly heavily loss-making routes. Entire issue in aviation space needs to be addressed, the whole sector is facing problems and the stated policy of the govt is to encourage FDI". Currently, the government allows only non-airline foreign companies to invest in Indian aviation companies up to a limit of 49%. According to Dr Mallya, given the future potential in the fast growing Indian aviation market, foreign airlines will be interested in investing in local carriers.

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