Relaxation of Norms for FDI in Aviation Sector
As per Press Note 12 (2015 Series) dated 24th November, 2015, Department of Industrial Policy and Promotion (DIPP) has enhanced the foreign equity cap for Non-scheduled Air Transport Service and Ground Handling Services from 74% to 100% and have placed these sectors under the automatic route. Further, Regional Air Transport Service (RSOP) has also been made eligible for Foreign Investment upto 49% under automatic route. Following three proposals of FDI by foreign airlines to invest in Domestic Scheduled Passenger Airlines have been approved by the Government:
(i) Preferential allotment of 24% of paid equity share of Jet Airways (I) Ltd. to Etihad Airways. (ii) Joint venture company by Air Asia Investment Limites (AAIL, a company incorporated under the laws of Malaysia) 48.951%, Tata Sons Limited (TSL)- 30.019% and Telestra radeplace Pvt. Ltd. (Telestra)- 21.028% in the name of Air Asia (India) Pvt. Ltd.
(iii) Joint venture by Tata Sons Ltd (51%) and Singapore Airlines Ltd (49%) in the name of TATA SIA AIRLINES LTD.
This information was given by Minster of State for Civil Aviation, Dr Mahesh Sharma in a written reply to a question in the Lok Sabha today.
