Friday , 3 December 2021

IATA working on document calling for foreign carriers to buy in to domestic airlines

According to a PTI report, the International Air Transport Association (IATA) is working on a non-binding document for its member airlines calling for foreign ownership, saying that the aviation industry should be allowed to run like any other business like automobiles or telecom. IATA is planning to urge all governments to have a re-look at allowing foreign airlines to pick up a stake in domestic airlines.

“We are not talking only about India, but along with other countries we will certainly recommend that foreign airlines be allowed to pick up a stake in domestic airlines. We are supporting the relaxation of overseas investment as this could help airlines to stay afloat or re-structure their business more efficiently,” said Brian Pearce, Chief Economist, IATA.

Elaborating further, Carlos Grau Tanner, Director (Government and Industry affairs), IATA said that he is working on the non-binding document which is likely to be tabled at an international conference early next year. Tanner further added that cross-border ownership was prevalent in other industries like telecom and automobile, and they do not face any kind of FDI related restrictions that the aviation sector faces.

About Devesh Agarwal

A electronics and automotive product management, marketing and branding expert, he was awarded a silver medal at the Lockheed Martin innovation competition 2010. He is ranked 6th on Mashable's list of aviation pros on Twitter and in addition to Bangalore Aviation, he has contributed to leading publications like Aviation Week, Conde Nast Traveller India, The Economic Times, and The Mint (a Wall Street Journal content partner). He remains a frequent flier and shares the good, the bad, and the ugly about the Indian aviation industry without fear or favour.

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