FDI in aviation to cover losses, says minister
The government had to allow 49pc Foreign Direct Investment (FDI) in the aviation sector to cover losses being incurred by airlines for the past few years, said Minister of State for Civil Aviation K.C. Venugopal on Tuesday.
In a written reply in the Rajya Sabha, Venugopal said: "For the last few years airlines are reported to have been incurring losses due to various reasons including non-availability of working capital."
"The Government has taken cognizance of the same and has taken various steps to help the airlines in this crisis, which include permitting 49 percent FDI by foreign airlines in domestic carriers," he said.