Government approves 100 per cent FDI in airlines; 49 per cent ceiling for foreign carriers

The Ministry of Civil Aviation (MoCA) has relaxed foreign direct investment (FDI) norms, under which foreign investors, barring overseas airlines, have been permitted to hold 100 per cent stake in domestic scheduled air transport and regional air transport services. The new set-up allows 49 per cent FDI through the automatic route, while for anything higher, government approval will be required. Maintaining the status quo, foreign airlines will be allowed to invest only up to 49 per cent in local carriers. With regard to airports, 100 per cent FDI in brownfield projects through the automatic route has been permitted.

 

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