Wednesday, November 16, 2011

India Considering Relaxing Foreign Ownership Rules

The Indian government is reportedly considering a change to its airline ownership rules. See Santanu Choudhury and Amol Sharma, India is Urged to Ease Airline-Ownership Rules, Wall St. J., Nov. 15, 2011 (available here). Indian law prohibits foreign carriers from investing in Indian carriers, though foreign investors who aren't affiliated with foreign carriers are able to own up to a 49 percent stake. Kingfisher Airlines chairman Vijay Mallya has asked the government to remove the prohibition on investment by foreign carriers and the Indian government has taken it under consideration. Strict restrictions on foreign investment remain a problem throughout the aviation industry, so any loosening of such restrictions would be welcomed by many.

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