Full-service airlines have high debts and others are loss-making
The Indian government will soon make a decision on whether to allow international airlines to invest in local carriers that badly need foreign investment in order to survive and expand. The country’s Department of Industrial Policy and Promotion is suggesting that foreign airlines should be able to buy stakes of up to 26%, while the civil aviation ministry is asking for the limit to be placed at 24%.
Until now, foreign investment of up to 49% has been permitted in Indian airlines, but this excludes direct or indirect investments in domestic airlines. Full-service airlines such as Air India, Jet Airways and Kingfisher Airlines are said to have high debts while others – with the exception of IndiGo – are loss-makers.