India to allow foreign airlines to pick up stake in local carriers
By agencies   |   Tuesday, 12 April 2005, 19:30 IST
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NEW DELHI: India may change allow foreign airlines to buy stakes in local carriers, a news report quoting civil aviation minister said Tuesday. India currently allows foreign companies but not foreign airlines to own up to 49 percent in Indian carriers. But the union aviation ministry will soon submit a proposal to the Cabinet asking for these rules to be relaxed and include foreign carriers; The Financial Express quoted Civil Aviation Minister Praful Patel as saying. Patel hoped the policy would come into effect by the end of May, the paper said. India is also planning to privatize the running of its airports, although foreign investment has not been allowed yet. The government has proposed that joint venture companies run the New Delhi and Mumbai airports, which together handle about 63 percent of India's international passenger traffic. Under the government's privatization plan, private companies would run the airports on 30-year leases and government stakes in the airports would be capped at 26 percent

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