DIPP against foreign airlines buying stake in Indi

The commerce and industry ministry is not in favour of allowing foreign airlines to buy stake in Indian carriers on the ground that the sector is sensitive.

Besides, the view in the Department of Industrial Policy and Promotion (DIPP) is that no other major country permits investment by foreign airlines into their domestic operators. "It is not allowed even in the US, UK or any other major European country," an official said.

A section of the domestic airlines industry, facing huge financial crunch, has been demanding opening up the sector to foreign airlines.

According to the existing policy, while 49 per cent FDI and 100 per cent NRI investment is allowed in domestic airlines, there should not be any direct or indirect participation by any foreign airlines.