Aviation Sector in India

Government has eased the Aviation policy last September and allowed foreign carriers to own up to 49% in local airlines. This decision had taken by the government to increase the foreign investment & to push the growth of the Indian Economy.

Policy measures initiated by the government for the civil aviation sector have begun to yield results and the airline industry in India is witnessing a revival. Now, Indian aviation sector has received two different types of proposals / decisions

  1. Joint venture between Air Asia and the Tatas for a low cost airlines
  2. Tie-up between Abu Dhabi based Etihad Airways and Jet Airways : Indian Carrier Jet Airways to sell 24% stake to Abu Dhabi Airlines to serve small cities in India. It is the first foreign investment since change in ownership rules. This alliance would bring additional traffic, frequencies and revenues to big as well as small airports of Airports Authority of India.

Benefits of Foreign Investment to Aviation sector & Indian Economy

  1. Foreign Carriers can offer expertise ,connectivity and convenience
  2. Increase in Employment
  3. More competitive price
  4. Investment will push the growth of Indian economy.