Qatar Airways' proposed investment faces policy and competition roadblocks

Other airline chiefs also against any dilution in existing ownership rules

Qatar Airways will face the twin test of complying with India’s foreign direct investment (FDI) norms and opposition from incumbent carriers for its plan to set up an airline here.
 
The government  formally allows 100 per cent FDI in a scheduled airline but there are policy contradictions. Sector experts and lawyers say 100 per cent FDI is applicable only where there is no investment by a foreign airline. Thus, the current rules would have to be modified.
 
Also, the existing rule still mandates that substantial ownership and effective control of an airline must vest with Indian nationals. The