In a bid to increase the FDI (Foreign Direct Investment) in India, the Center’s decision seems to be taking shape. As the government allowed 100 per cent FDI in the aviation sector in 2016, a major aviation giant from Gulf nation, Qatar Airways is planning to set up a domestic airline in India.
This will be the first airline venture in India that will be totally owned by a foreign country.
During a meet in Berlin, the CEO Akbar Al Baker, Qatar Airways said “as the Indian government has allowed 100 per cent foreign direct investment in the aviation sector, we will have domestic carriers in India.”
Earlier in June 2016, the government had allowed foreign investors to own up to 100 per cent stake in local carriers by liberalising FDI regulations. Currently, foreign airlines are allowed to invest only up to 49 per cent in Indian carriers.
Many times before, Qatar Airways had explored the possibility of buying a stake in Indian budget carrier IndiGo.
Qatar Airways has a significant number of flights from India to Qatar’s capital city Doha.
Though, the FDI norms have been relaxed, the government is ye to amend the regulations with respect to Air Operator Permit (AOP). At present, AOP is granted only to an airline where substantial ownership is with Indian entities.