Foreign carriers adopt 'wait-and-watch' approach as Centre allows 49% stake acquisition in aviation sector

NEW DELHI: The prominent foreign carriers have taken up wait-and-watch approach over Centre's move to permit them to acquire 49% stake in Indian carriers.

The national carrier Air India is out of the ambit of this significant policy declaration, but reports suggest that few Indian carriers have started to hold preliminary deliberations with the foreign carriers to lure investment.

Just a day within notifying FDI norms, Civil Aviation Minister Ajit Singh stated that the aviation industry is passing via a difficult phase due to the economic crisis.

Moreover, except for Abu Dhabi-based Etihad Airways, many foreign airlines stated that they presently don't have any plans to opt for investment in Indian carriers.

Aviation think-tank Centre for Asia Pacific Aviation (CAPA) also said, "The floodgates of investment are unlikely to open in the short term but from the perspective of improving sentiment and demonstrating that the government is committed to supporting the development of a viable airline industry, this is a positive milestone".