ALSO READBusiness stresses in PM Modi's backyard spur India's bank rescue India embarks on $32.4 billion state bank recapitalisation to boost economy Bank of India to commission Rs 1500 crore to Air India Regional routes power India's Civil Aviation sector (2017 in Retrospect) Airlines set ticket prices as per 'global practices', says Jayant Sinha
The Cabinet, headed by Prime Minister Narendra Modi noted that applicability of this ruling would be subject to two conditions- foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49 percent, either directly or indirectly; and substantial ownership and effective control of Air India shall continue to be vested in Indian National.
As per the extant policy, foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 percent of their paid-up capital.
However, this provision has been eliminated, thereby creating opportunities for foreign airlines to invest up to 49 percent under approval route in Air India, subject to the aforementioned conditions.
On a related note, the national carrier has a debt burden of more than Rs 52,000 crore.
The Air India group flies to 44 overseas and 75 domestic destinations. Flights operate to Copenhagen, Tokyo, Washington, Stockholm, Sydney, Hong Kong, Kabul, Colombo, Seoul, Singapore and London, among other foreign cities.
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