Shares of airlines companies – Jet Airways (India), Kingfisher Airlines and SpiceJet are trading higher by 5% each, in otherwise subdued market in morning trades, on hopes of foreign direct investment (FDI) in aviation sector.
Late Tuesday, the government notified 100% foreign direct investment (FDI) in single-brand retail.
According to media reports, the civil aviation ministry is likely to drop its opposition to higher investment by foreign airlines in the aviation sector and agree to let them hold up to 49% in domestic carriers.
Ajit Singh, the civil aviation minister, believes that international carriers could be allowed to hold more than 26% stake in Indian carriers, the report suggests.
As per the current regulations, foreign carriers such as British Airways, Singapore Airlines and Emirates are banned from directly pumping money into the aviation sector, although financial and other non-airline investors can invest up to 49% in Indian airlines.
