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No foreign airlines applied to start domestic
passenger flight through FDI
The central government has not received any application from foreign airlines to
start a domestic passenger carrier through the 100 per cent FDI (Foreign Direct
Investment) route, Minister of State for Civil Aviation Jayant Sinha said on
Wednesday.
The minister gave the information in reply to a question raised about Qatar
Airways' plan to start a fully owned domestic passenger carrier in partnership
with an institutional investor on the sidelines of an industry event here.
Earlier, Qatar Airways had said that its plan to set up an airline in India along with
Qatar's sovereign wealth fund.
Under the current rules a foreign airline can only invest up to 49 per cent in
domestic airline. However, in partnership with an institutional investor, the
foreign airline can invest and set up a 100 per cent owned domestic passenger
carrier.
The minister elaborated that the government was considering stakeholders' views
before framing any policy that allows for 100 per cent FDI into domestic airlines.
"There are various opinions on this matter of 100 per cent FDI. We are
considering what the Indian airlines through FIA (Federation of Indian Airlines) are
saying," Sinha told reporters.
"Of course, the government's policies are such that we do welcome 100 per cent
FDI but we are working through the exact registration process and all of the
appropriate policies around that," Sinha added.
Besides, the minister clarified government's stand on the Comptroller and Auditor
General's (CAG) report which pointed out that national passenger carrier Air India
ran a standalone operating loss of Rs 321.4 crore in 2015-16, though the company
claimed an operating profit of Rs 105 crore.
Sinha said that it was possible for Air India to post operating profit under the
Generally Accepted Accounting Principles (GAAP).
The minister was speaking at an event organised by budget passenger carrier
SpiceJet to launch its apprentice programme for engineering and maintenance
workforce.
Article By – Business Standard