Government considering proposals
The Indian government may allow foreign investment in to help the country's troubled domestic airline industry.
Under new proposals, foreign stakeholders could inject cash into an industry which faces a loss of Indian rupees 80bn ($1.6 billion) for the financial year ending March, analysts said.
India's civil aviation minister Praful Patel said the government was engaged in a consultation process but could not give a time line for it.
"I don't think at this point giving direct financial concessions or assistance is possible," said Mr Patel.
"Short of writing a cheque, anything which can be done in terms of policy measures, we will do."
Under current laws foreign investment in Indian carriers is prohibited, but they may have foreign portfolio and direct holdings of up to 49%.
Vijay Mallya, chairman and ceo of Indian carrier Kingfisher, asked the government to allow 25% foreign investment in India's airlines.
Jet Airways, India's second largest airline, recently reported third quarter 2008 losses of Indian rupees 2,142m ($44m) and a 13.1% decline in passenger numbers.
Prompted by a fare increase by airlines last week, the Indian watchdog Monopolies and Restrictive Trade Practices Commission is investigating allegations of a cartel operating in the industry, Mr Patel said.
Domestic carriers such as SpiceJet, Kingfisher Airlines, Jet Airways and Air-India have since rolled back the increase.
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