Mallya calls for foreign airline investment in domestic ones

Kingfisher Airlines chief Vijay Mallya on Monday pitched for liberal FDI rules that will allow foreign airlines to pour money in bleeding Indian carriers, after Prime Minister Manmohan Singh indicated that the policy may be made attractive to foreign investment.

Kingfisher Airlines chief Vijay Mallya on Monday pitched for liberal FDI rules that will allow foreign airlines to pour money in bleeding Indian carriers, after Prime Minister Manmohan Singh indicated that the policy may be made attractive to foreign investment.

HT Image

"I have always said strategic investors give you a much better value, certainly better than a PE (private equity) investor," Mallya said on the sidelines of the India Economic Summit in New Delhi. By strategic investor, Mallya means foreign airlines.

Foreign direct investment is allowed, up to 49 per cent in the domestic airlines but it is not open to foreign carriers.

"With the Prime Minister pronouncing about the FDI, (I hope) the government will consider the matter," Mallya said.

The Prime Minister, yesterday, said that the policy would be guided by the government's "desire to make India even more attractive for foreign direct investment. We are particularly keen to rationalise and simplify procedures so as to create an investor-friendly environment".