No need for foreign partner: Naresh Goyal | india | Hindustan Times
Today in New Delhi, India
Dec 02, 2016-Friday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

No need for foreign partner: Naresh Goyal

india Updated: Feb 15, 2012 01:42 IST
Anupama Airy
Anupama Airy
Hindustan Times
Highlight Story

Jet Airways chief Naresh Goyal has ruled out the possibility of selling a stake to a foreign airline.

"We don't need a foreign partner," Goyal told Hindustan Times here on Tuesday. Jet Airways is India's largest domestic carrier by passengers carried.

A group of ministers had in January cleared a proposal allowing foreign airlines to take up a 49% stake in Indian carriers. The proposal now needs cabinet clearance and the aviation ministry would soon be moving a cabinet note on this.

While allowing foreign direct investment (FDI) by foreign carriers is being seen as a lifeline for the debt-laden aviation sector, Jet Airways, many believe had been opposed to the move while rivals Kingfisher and SpiceJet favoured it.

Asked about his opposition to FDI by foreign airlines, Goyal said, "We welcome the government's decision on FDI." He was talking to HT on the sidelines of a meeting of businessmen from India and Pakistan in Karachi as part of commerce minister Anand Sharma's visit to Pakistan.

"The entire airline industry is facing losses. Fuel prices are not in my hand," he said in response to a question on Jet Airways widening losses.

At present, India allows foreign investment of up to 49% in Indian carriers, but foreign airlines are banned to invest. The initial proposal moved by the department of industrial policy and promotion had favoured a 26% cap on foreign airlines' holding but a committee of secretaries had proposed a 49% cap. A holding above 25% gives the right to block a 'special resolution'.