Airlines India allows foreign investment in Air India

This decision has been announced after the Government of India decided to privatize the national carrier in mid-2017.

Since 2012 foreign airlines were allowed to invest under a government approval in Indian airlines operating scheduled and non-scheduled air services, up to the limit of 49%.

Foreign airlines were allowed to invest under government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital in 2012. Until now, this decision was not applicable to India’s flag carrier Air India.

Indian media reports, several international airlines could be interested in an investment in the Star Alliance carrier. Air India’s major competitor Jet Airways, in which Etihad has a 24% stake, is expected to bid for Air India. Additionally, the joint venture between the Indian company Tata Sons and Singapore Airlines, which already launched the Indian domestic carrier Vistara seems to be interested in Air India.

Air India is the largest international Indian carrier with a fleet of over 100 aircraft including four Boeing 747-400, 15 Boeing 777 and 26 Boeing 787 Dreamliner. The carrier lost market shares on its domestic market as low cost carriers like IndiGo, Spicejet and Vistara are growing quickly.

For its domestic operations, Air India has launched several subsidiaries including the low cost carrier Air India Express and the regional airline Alliance Air.