NEW DELHI (NNN-Bernama) –- India’s biggest carrier by market share, Jet Airways, supports the government’s plan to allow foreign direct investments (FDIs) of up to 49 per cent by a foreign carrier.
"We support all the government policies," its chairman, Naresh Goyal, told reporters on the sidelines of an interactive session on "Building the Future of Indian Aviation", by the Confederation of Indian Industry here.
At present, FDIs of up to 49 per cent are permitted in India’s airline sector but foreign carriers are not allowed to buy equity due to security reasons.
The International Air Transport Association (IATA)’s director general and chief executive officer, Tony Tyler, acknowledged that allowing foreign airlines to enter the market was an important step forward.
However, he pointed out that investors would not be keen if problems faced by India's aviation industry were not addressed.
"India’s aviation sector is in a multi-faceted crisis," he said, adding "if critical problems were not comprehensively addressed, investors would not be lining up to put their cash in Indian airlines."
Under current circumstances, investors can’t see how they would ever enjoy a return.
"India needs policies to reduce the tax burden on aviation, lower external costs and ensure adequate infrastructure to meet growing demand," said Tyler. --NNN-BERNAMA
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