Wider airways

For many, the decision to allow foreign airlines to take a 49 per cent equity stake in domestic carriers may seem cynically timed to benefit a company that is not just struggling to service debts of some Rs 7,000 crore, but is unable to meet statutory obligations as well. Even if this judgment is accepted at face value, it still does not take away the basic merit of the Civil Aviation Ministry's in-principle decision. Currently, the Government permits foreign direct investment (FDI) of up to 49 per cent in scheduled local passenger airlines.

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