NRI’s have been allowed 100% FDI

New Delhi, Aug. 03, 2005
Ravi Sharma
NRI press

As regards the liberalization of the sector, the following significant steps have already been taken:-

(i) The Foreign Direct Investment limits in ‘Air Transport Services (Domestic Airlines)’ increased from 40% to 49%. However, the NRI’s have been allowed 100% FDI.

(ii) Private scheduled carriers with five years experience in domestic sector and having fleet size of twenty aircraft permitted to operate an international routes.

(iii) Liberal policy in the exchange of capacity entitlement/traffic rights adopted by the Government which paved the way for more foreign airlines to operate to/from India.

(iv) Amendment of the various outdated provisions of Aircraft Rules to keep the provisions abreast with the international standards and developments in the civil aviation sector.

(v) Tourist charter guidelines liberalized.

(vi) Fleet expansion plans of Air India/Indian Airlines approved.

(vii) Restructuring of Delhi and Mumbai airport and work on development of greenfield airports at Bangalore and Hyderabad.

(viii) Upgradation/expansion/development of airports is undertaken depending upon traffic potential, requirement of airline operators and need of traveling people.