Indian scheduled carriers seem to be divided on the issue of whether the government should allow FDI by foreign airlines in Indian carriers, civil aviation ministry sources have said. The government is understood to be considering
whether to allow at least 24 per cent of FDI by foreign airlines in Indian carriers. As per the current policy, no FDI by foreign airlines in Indian scheduled carriers is permitted. However, the FDI up to 49 per cent and investment by non-resident Indians up to 100 per cent is allowed on the automatic route “subject to sectoral regulations”. Some of the private scheduled carriers sustaining heavy losses are therefore in favour of FDI by foreign airlines.