Cabinet allows foreign airlines to buy up to 49% stake in Air...

Cabinet allows foreign airlines to buy up to 49% stake in Air India

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Union Cabinet allowed foreign airlines to acquire up to 49% stake in Air India. As per the extant policy,the foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India.

It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India subject to the conditions that:

Foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49% either directly or indirectly Substantial ownership and effective control of Air India shall continue to be vested in Indian National.

Air India has grown to become a mega international airline with a network of 34 destinations across the USA, Europe, Australia, Far-East and South-East Asia and the Gulf. The airline’s domestic network covers 52 destinations, including far-flung areas of the North-East, Ladakh, Andaman and Nicobar Islands. Air India, today, flies one of the youngest, state-of-the-art, fleet of aircraft comprising a mix of the wide-body Boeing B777s, B747s, its latest acquisition- the B787 Dreamliner and the narrow body Airbus A321s, A320s and A319 aircraft.