Vijay Mallya, GR Gopinath welcome FDI in aviation sector

Private airlines, including cash-strapped Kingfisher Airlines, have welcomed the government's nod to ushering in foreign direct investment (FDI) by overseas carriers in India's aviation sector.

"The FDI in airlines will open up a wide range of opportunities for both domestic as well as foreign carriers which wish to participate in the strong growth potential for civil aviation in our country," Mallya-owned Kingfisher Airlines said in a statement.

Expressing hope that the move will enable the carrier to re-engage with prospective investors in a more meaningful manner, it said the government decision would help the airline recapitalise and ramp up its operations.

The government on Friday took major steps for reforms by allowing 51 per cent FDI in multi-brand retail, 49 per cent investment by foreign airlines in aviation sector and sale of equity in four PSUs.

Kingfisher Airlines Chairman Vijay Mallya termed the government decision to allow 49 per cent FDI in airlines as bold and fantastic.

"Bold decisions taken by the government. Fantastic to restore confidence and kick start economic growth," he said on micro-blogging site Twitter immediately after the decision.



Naresh Goyal-led Jet Airways also welcomed the move. "We welcome any policy (decision) initiated by the government," Jet said.

Reacting to FDI in domestic airlines, founder of the low-cost airline model Captain GR Gopinath said the move needs to be seen in its totality than only from the investment point of view.

"It is good for the industry and the common man. We need more airlines and this move will bring a number of overseas carriers to India," Gopinath said, adding the overseas players will now engage in talks with the domestic airlines more seriously.

"The government was only talking about it. But now with this bold step, some concrete proposals are expected to come through," he said.

With inputs from PTI