PM promises help to embattled private airlines, remains silent on direct investments by foreign carriers

New Delhi: Prime Minister Manmohan Singh promised to help the bosses of India's embattled private airlines but stopped short of commenting on a key demand of at least three of them - permission for investments by foreign airlines. The PM said the matter was under consideration, said an official who attended the meeting on Saturday.
"One airline promoter did raise the issue of FDI, but Singh said since the process had started (the industry ministry has floated a proposal to allow foreign carriers to buy 26% in Indian airlines), nothing could be said." But the PM acknowledged the problems of airlines - struggling against spiralling debts, high taxes and a ferocious price war - said the official asking not to be named.
The government permits 49% FDI in Indian carriers by non-airline firms but bans direct investments by foreign airlines, citing security reasons. IndiGo and Jet Airways are against FDI while SpiceJet, GoAir and Kingfisher favour the move.
The half-an-hour meeting began at 10:45 am at Singh's residence, 7 Race Course Road, and was attended by IndiGo promoter Rahul Bhatia and president Aditya Ghosh, Jet Chairman Naresh Goyal, Kingfisher Airlines CEO Sanjay Aggarwal, SpiceJet CEO Neil Mills, GoAir promoter Jeh Wadia and government officials.
Bhatia arrived in a CNG-powered blue (IndiGo colours) Wagon R, driven by Ghosh. Other airline bosses came in chauffeur-driven cars. One airline official familiar with Saturday's meeting said nothing much came of it. "The PM gave a patient hearing... Some of the smaller issues may be solved, but there were no specific promises."
27/11/11 Anindya Upadhyay & Binoy Prabhakar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Nov 2011