BackAviation | Decision soon on foreign stake in local airlines
Aviation | Decision soon on foreign stake in local airlines
Premium
Singapore: India will decide very soon on a plan to allow overseas airlines to purchase a stake in local carriers, opening the doors for Singapore Airlines Ltd, Virgin Atlantic Airways Ltd and other carriers to invest in the country. The government may permit overseas airlines to own stakes of up to 25%, Arun Mishra, a joint secretary in the civil aviation ministry, told reporters in Singapore on Wednesday.
That would reverse at least a decade-old rule that banned non-Indian airlines from owning shares of domestic carriers.
With global air traffic plunging amid an economic recession, India’s move may give foreign airlines a slice of a market that’s set to surge ninefold in the two decades to 2026, according to Airbus SAS. The plan will also gives domestic carriers such as Jet Airways (India) Ltd and SpiceJet Ltd access to cash and expertise amid a record $2 billion (Rs9,760 crore today) industrywide loss last year.
—Bloomberg
*********
IOC stops fuel supply on credit to Kingfisher
New Delhi: The country’s biggest refiner, Indian Oil Corp. Ltd (IOC), has stopped fuelling planes of Kingfisher Airlines Ltd on credit, the only carrier that’s been asked to pay cash after delaying payments on jet fuel purchases.
“They have outstanding dues," G.C. Daga, director of marketing at state-run IOC, said over phone from Mumbai, without providing details. “The fuel is being supplied only after they pay cash first."
IOC is cracking down on local carriers as refiners try to recover an estimated $572 million (about Rs2,791 crore) in dues for jet fuel, the biggest cost for most Asian airlines.
The carriers got a breather last year when the government gave them more time to make payments after jet fuel prices climbed.
—Bloomberg
*********
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
