India to change airline policies

India to change airline policies

NEW DELHI: India may change current investment rules to allow foreign airlines to buy stakes in local carriers, a news report said on Tuesday.

India currently allows foreign companies -- but not foreign airlines -- to own up to 49 percent in Indian carriers.

But the federal aviation ministry will soon submit to the Cabinet a proposal changing those rules to include foreign carriers, Civil Aviation Minister Praful Patel was quoted as saying by The Financial Express. 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 Bombay airports, which together handle about 63 percent of India's international passenger traffic. -- AP