FDI IN AVIATION: LUKEWARM RESPONSE FROM FOREIGN AIRLINES
New Delhi,India : The decision to bring in FDI in aviation got a rather lukewarm response. While cash strapped Kingfisher airlines welcome it and their morale is up for now, several foreign players were more circumspect.
But the big question who will invest in Indian carriers with struggling finances? Sources at Kingfisher airlines tell CNN-IBN that talks with either Qatar or Etihad airlines will now resume. Kingfisher reported losses of over Rs 2,000 crores. Sun group-run Spicejet is in talks with Emirates, one of the largest foreign airlines to operate out of India, confirm sources in the airline, but Emirates is not willing to confirm for now.
President, Emirates Airlines Tim Clark said, “We are looking, we are very interested in civil aviation in India but we are not getting involved in investment with some of their carriers.”
European carriers like Lufthansa and British airways also view Indian market with a lot of promise. The passenger traffic has been growing at a very healthy double digit rate and according to Boeing could be the largest in the world in 20 years. Government support to Air India could be a stumbling block.
15/09/2012 : Karma Paljor / CNN-IBN.
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