Relaxation of Norms for FDI in Aviation Sector

The Department of Industrial Policy and Promotion (DIPP) has enhanced the foreign equity cap for Non-scheduled Air Transport Service and Ground Handling Services from 74% to 100% and have placed these sectors under the automatic route. Further, Regional Air Transport Service (RSOP) has also been made eligible for Foreign Investment upto 49% under automatic route.

Following three proposals of FDI by foreign airlines to invest in Domestic Scheduled Passenger Airlines have been approved by the Government:

(i) Preferential allotment of 24% of paid equity share of Jet Airways (I) Ltd. to Etihad Airways.

(ii) Joint venture company by Air Asia Investment Limites (AAIL, a company incorporated under the laws of Malaysia) 48.951%, Tata Sons Limited (TSL)- 30.019% and Telestra radeplace Pvt. Ltd. (Telestra)- 21.028% in the name of Air Asia (India) Pvt. Ltd.

(iii) Joint venture by Tata Sons Ltd (51%) and Singapore Airlines Ltd (49%) in the name of TATA SIA AIRLINES LTD.

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Vignesh

Vignesh Sathyan is the Founder of Day Today GK, a portal that helps Aspirants who are preparing for Competitive Exams.

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