Foreign airliners may get to pick stake in cargo operations

Font Size

Print

Feedback

Email

Discuss

Related Articles

Lufthansa gives gloomy outlookSingapore Air sees Q3 yields remaining negativeSafety warning issued for Airbus A330, A340

New Delhi, Feb 5: A proposal to hike FDI cap in helicopter and sea-plane operations, MRO facilities, charters, air-cargo and non-scheduled air operations has been moved by the civil aviation ministry for the Union Cabinet's consideration. “We have moved a Cabinet note proposing hiking FDI cap in different areas of the aviation sector to expand the air connectivity across the country,” civil aviation minister Praful Patel told reporters here.

He said the ministry has mooted 100% FDI in helicopter and sea plane operations along with Maintenance,Repair and Overhaul (MRO) facilities. “For non-scheduled and cargo operations, we have proposed raising the FDI cap to 74%. We may also consider allowing foreign airlines participation in the air cargo sector,” he added.

The current FDI limit in the entire civil aviation sector is 49%.Patel said the cap on foreign funds in domestic carriers will remain at 49 % and there was no proposal to allow participation of foreign airlines in this area. The minister also said the government was “objectively considering” allowing 100% private development of greenfield airports, provided the player could guarantee the land.Patel said private players were welcome, as it was going to be difficult for the government to acquire land for each and every project.

“So, if the private players can provide land, we will objectively look into the proposal for merchant airports,” he said, adding that the new airport should be at a reasonable distance from the existing ones so that air space and other technical issues could be comfortably managed.

He said it was increasingly becoming difficult to acquire land for fresh projects and hence if private players were willing to take risk, government would be ready to consider their project.

Asked if the government would allow 100 % FDI indeveloping merchant airports, he said no formal proposal has been moved. Patel said the ministry was contemplating a conference of all state governments to develop aviation infrastructure, including pooling about 300 airstrips in different parts of the country, so as to make them operational and economically viable.