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‘Allow 100 pc FDI in airlines’

A study has urged government to come up proposed civil aviation policy sooner

Policy Pulse
Publish Date: Mar 17 2016 2:29PM | Updated Date: Mar 17 2016 2:29PM

‘Allow 100 pc FDI in airlines’

Stressing for open sky policy and cent percent FDI in aviation sector, an industry study has urged government to come up proposed civil aviation policy sooner and solve vexed issue of international flying rules for local carriers. 

The joint KPMG-FICCI report on India Aviation 2016 sought finalisation of the long-awaited National Civil Aviation Policy and also advised going for open skies along with 100 percent FDI in airlines and a final decision on 5/20 Rule. 
"It may cause some pain initially, but will make Indian carriers more efficient, quality conscious, passenger centric and global player," the report said. 
Currently, government allows up to 49 percent investment by a foreign airline in an Indian carrier.
It, however, has proposed to increase it to over 50 percent in the draft policy, unveiled in October last year. 
National Civil Aviation Policy (NCAP) draft, has presented interesting proposals to promote growth in the aviation sector and its aim is to enable 300 million domestic ticketing by 2022, even though ambitious, highlights the hidden potential of the Indian aviation sector, the report said. 
"(The Government should) finalise long awaited Draft National Civil Aviation Policy in letter and spirit," it said. 
Noting that for super-charging growth in sector, crucial remedial measures are required, report said India needs to be promoted as a trade and tourism centre in order to derive benefits for aviation industry.