INDIA: FDI in cargo airlines to go up

The Indian Government is considering a proposal to allow foreign airlines to pick up a minority stake in domestic cargo airline operations. "The Ministry has proposed allowing 100 FDI in sea plane, helicopter operations and setting up of Maintenance Repair and Overhaul (MRO) facility. Besides, we are also considering whether to allow foreign airlines to […]


The Indian Government is considering a proposal to allow foreign airlines to pick up a minority stake in domestic cargo airline operations.

"The Ministry has proposed allowing 100 FDI in sea plane, helicopter operations and setting up of Maintenance Repair and Overhaul (MRO) facility. Besides, we are also considering whether to allow foreign airlines to pick up a stake of up to 49 per cent in cargo airline," the Minister for Civil Aviation, Praful Patel said.

At present the FDI limit in cargo operations is pegged at 49 percent but as in the case of civil aviation, foreign airlines are not allowed into this.

The thinking in the Government is to raise this 49 percent limit to 74 percent and possibly allow foreign airlines to pick up 49 percent stake under the overall 74 percent ceiling. These proposed changes in the FDI limits would be sent to the Union Cabinet shortly for their approval, Patel added.