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.