Question : FOREIGN STAKE IN DOMESTIC AIRLINES



(a) whether the Government is planning to allow foreign airlines to pick up stake in domestic airlines;

(b) if so, the details thereof alongwith the present status of the proposal;

(c) the details of practices followed in this regard in many of the developed countries;

(d) whether the Government has sought the opinion of the airlines in this regard; and

(e) if so, the details thereof?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF OVERSEAS INDIAN AFFAIRS & MINISTER OF CIVIL AVIATION (SHRI VAYALAR RAVI)

(a) to (e):- A proposal to allow Foreign Direct Investment (FDI) by foreign airlines in Domestic Airlines is under examination of Department of Industrial Policy and Promotion (DIPP).

Foreign Ownership limits for investment in airlines in other developed countries are as under:

USA 25% of voting stock

Japan 33%

Australia & NZ 49% for international carriers/ a single foreign airlines upto 25%

Australia 100% (in domestic airlines)

China 35%

Brazil 20%

Singapore 100%

UAE 49%

South Korea 50%