KINGFISHER AIRLINES; NEW LIFELINE?

The ECONOMIC TIMES, citing unidentified Ministry Sources, today said that the Civil Aviation Ministry is likely to withdraw its opposition to higher investment by foreign airlines in the sector and agree to let them hold up to 49 percent in domestic carriers.

The unidentified official is reported to have told the newspaper that the country's new civil aviation minister, Ajit Singh, believes that international carriers could be allowed to hold more than 26 percent stake.

Readers may recall that the ministry, under Singh's predecessor, Vayalar Ravi, had proposed allowing foreign airlines to invest less than 26 percent in Indian carriers.

The official was quoted by the newspaper as saying."We may further relax our stance on allowing foreign carriers to invest in Indian airlines. There is no difference between 26 percent and 49 percent because the rights of the shareholders remain the same at these two different levels of shareholding,"

The higher permissible investment limit, were it to come through, would come as an elixir to the entire ailing Civil Aviation Sector and in particular to debt-laden Kingfisher Airlines which is struggling to raise funds and come out of the quagmire.