The Ministry of Civil Aviation has agreed to the proposal of Department of Industrial Policy and Promotion (DIPP), to allow foreign airlines to buy 26% stake in the India private airlines. The aviation ministry had earlier proposed to a limit of 24% on the Foreign Direct Investment (FDI) by foreign carriers in the initial draft note prepared by the DIPP.
The ministry had originally raised concerns regarding security and predatory pricing by foreign airlines, affecting domestic market. However, the DIPP had proposed 26% foreign direct investment (FDI) by foreign airlines into the domestic industry on the back of Kingfisher Airlines falling into a severe debt crisis and several others facing resource crunch.
Without giving much detail, senior government official said, the civil aviation ministry has come on board for 26% FDI. Currently, government allows 49% FDI in the domestic aviation services like cargo handling however, carriers are not allowed.
Apart from the finance ministry, home ministry and the planning commission too have supported the draft Cabinet note. The ministry of finance has also supported the proposal, however, with condition that such investments should not violate capital market regulator Security Exchange Board of India’s (SEBI’s) guidelines.
Under the SEBI’s takeover Code, an open offer is triggered once an investor acquires 26% stake in listed firm. The size of the open offer required is 25% that would mean that the investor will have to buy extra equity from public.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: