Govt looking at FDI by foreign airlines in Indian carriers

"FDI is already allowed in airlines up to 49%. We are not changing that 49%," Singh told a press conference after a meeting of the consultative committee of
his ministry, and a separate interaction with players of aerospace industry here. "But what we are trying to do....right now other (foreign) airlines are not supposed to participate in the FDI (foreign airlines can't invest in Indian carriers)...We are trying to see if other airlines are also allowed to
participate (in the FDI)," he said.

Singh argued the airlines business is a complicated one and only airlines would be interested in investing in other carriers. He pointed out that Indian banks have "over-extended" hemselves to airlines and they are not willing to giving more money to the sector. To a question if Air India has approved a voluntary retirement scheme for 5,000 employees at a cost of Rs 800
crore, Singh said, "Air India has been looking at it and the Board approved it."