Press Information Bureau

Government of India

Ministry of Civil Aviation

11-December, 2012 16:49 IST

For the last few years airlines are reported to have been incurring losses due to various reasons including non-availability of working capital. The Government has taken cognizance of the same and has taken various steps to help the airlines in this crisis, which include permitting 49 percent FDI by foreign airlines in domestic carriers.

This information was given by the Minister of State for Civil Aviation Shri K.C. Venugopal in a written reply to a question in Rajya Sabha today.

 

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Foreign airline investment allowed in domestic carriers to address airline working capital shortages and losses. Permission for 49 percent FDI by foreign airlines in domestic carriers permits foreign equity stakes below majority control to improve access to working capital and operational support, while preserving domestic ownership and management, as a government relief measure addressing airline losses and liquidity constraints.