Are foreign airlines willing to invest in Indian carriers?

The much-awaited nod for allowing foreign direct investment (FDI) in the Indian aviation sector has come through. Indian carriers like Kingfisher Airlines, SpiceJet  and Jet Airways have been telling the media from time to time that they are independently in talks with foreign carriers for a probable stake sale if FDI is allowed in the sector .

But are foreign carriers keen to invest in Indian carriers?

Etihad Airways was prompt to release a press statement saying that it will invest in geographies where it will find an attractive investment opportunity. However, the airline was not direct in saying that it will invest in any particular Indian carrier but instead said, "It is our policy not to comment on speculation. Whenever we have any announcement of the sort to make we will announce it in line with regulatory and commercial requirements."

Another Gulf--based carrier Emirates told media that it welcomes the Indian government's move in announcing liberal policies and India is an important market.

However, there have been quite a few media reports of late indicating that Indian airlines are in talks with international carriers for strategic investment. But, post the FDI announcement none of the global airlines came ahead with a press announcement evincing interest in any of the carriers.

Time will tell....
Ajay Prasad, former aviation secretary told CNBC--TV 18, "Lifting the ban on FDI in aviation doesn't mean that everybody will queue up to invest in Indian domestic carriers. Any one who will invest money here will take a very hard look at the investment opportunity and debt standing, but at the same time it opens a window for some of the Indian carriers who are eyeing equity participation and it is logical that in Indian carriers it is foreign airlines who will invest rather than someone who is in some other business. "