Friday, July 15, 2016

With 100% FDI, foreign airlines can expect to soar

The Centre has decided to allow 100 per cent Foreign Direct Investment (FDI) in domestic airlines, but the catch is that foreign airlines can hold only up to 49 per cent in such ventures (the balance can be held by a foreign body that is not an airline).

While foreign investment up to 49 per cent will be under the automatic route, beyond it would require government approval.

The Centre also decided to allow 100 per cent FDI under the automatic route for brownfield airport projects. Earlier, under the automatic route, 100 per cent FDI was permitted in greenfield projects and 74 per cent in brownfield projects.

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