FIA discusses concerns over FDI in aviation with Sitharaman

Representatives of domestic airlines' grouping FIA today met Union Minister Nirmala Sitharaman and raised concerns over the move to permit overseas players to establish carriers in the country.

The Federation of Indian Airlines (FIA) -- comprising Jet Airways, SpiceJet, IndiGo and GoAir -- have been vociferous about their opposition to foreign entities being allowed to invest in local carriers.

The meeting assumes significance as it comes nearly a week after Qatar Airways announced plans to set up an airline in India along with the Gulf nation's sovereign wealth fund.

During the meeting with the Commerce and Industry Minister, the FIA representatives flagged concerns about allowing 100 percent ownership of local carriers by foreign entities, sources said.

Among others, SpiceJet CMD Ajay Singh was present at the meeting.
In a tweet, the Commerce and Industry Ministry said "key stakeholders the #airlines industry" met the minister.

Last week, Singh and Jet Airways acting CEO Amit Agarwal had met Civil Aviation Secretary R N Choubey and the discussions were mainly around the 100 percent FDI issue.

As part of liberalising norms for overseas investments, foreign non-airline players can own up to 100 percent stake in local carriers.

Qatar Airways Chief Executive Officer Baker Al-Baker, on March 8, announced in Berlin plans to establish an airline in India.

"We are joining hands with the investment arm of State of Qatar to start a domestic airline in India with a 100 percent investment," Al Baker had said.

In a strongly-worded letter to the ministry on January 3, the FIA had raised concerns about foreign players acquiring ownership in Indian airlines.

Once foreign controlled airlines are established as Indian carriers, they would gain automatic access to defence airfields, the grouping had said.