GoAir's Wadia flays delay in aviation FDI

Mumbai: Budget carrier GoAir today said it is optimistic about FDI in aviation but is not sure when the proposal will get the green signal.

"I am optimistic on FDI (foreign direct investment) in aviation... but when it will happen, I can't tell," GoAir chief Jeh Wadia told reporters on sidelines of 133rd annual general meeting of the Nusli Wadia-led Bombay Dyeing in Mumbai.[caption id="attachment_409492" align="alignleft" width="380"] Unhappy with FDI delay. Reuters[/caption]

Questioning the inordinate delay on the FDI issue, Wadia said he does not see any reason why overseas players should not be allowed to invest in domestic carriers.

"The government has already allowed 49 percent FDI in the sector by non-sectoral players. Even foreign banks and telecom companies can collaborate with domestic companies. (So) there is no reason why investment by foreign airlines is not allowed," Wadia said.

The present policy allows foreign companies such as investment banks to own 49 percent in domestic airlines but bars foreign carriers from investing in them.

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The clamour for FDI in airlines has grown in recent past with even those who initially had reservations on the issue like Jet Airways and SpiceJet, now coming out in support of the proposed move.

"I welcome FDI...The world keeps changing, I have also changed my stand. But FDI alone will not resolve the problems plaguing the aviation industry," Jet Airways Chairman Naresh Goyal had said last Friday.

With practically all airlines bleeding on account of high fuel cost, higher airport charges and taxes, the domestic carriers are in dire need of fund infusion. These companies have made huge losses are sitting on a debt pile of Rs 1 trillion now.

PTI