US, UK & Gulf carriers keen on flying regional routes in India

Moneycontrol Bureau Foreign airlines, especially from the Gulf countries, have shown interest in investing in the Indian aviation space. In an interview to Business Standard, Minister of State for Civil Aviation Jayant Sinha said that airlines have held meetings with the government to fly on regional routes. This comes after the government’s announcement of starting regional airlines in the country through subsidies and sops. Not naming the airlines, Sinha said that major airlines from West Asia, the US and UK have shown interest in running regional airlines in India. This can either happen through investment in existing airlines or starting a new airline service. Earlier this year, the government had increased the foreign direct investment (FDI) limit in domestic airlines to 100 percent, but FDI through automatic route has been put at 49 percent. The government rules also say that the principal place of business has to be India. In last few years, three Gulf majors – Ethihad, Emirates and Qatar – have become a major carrier on Indian skies.