Aviation FDI will offer travelers more choice: Gopinath

I hope the government will not step-back as it had done in the case of the retail sector

Capt. Gopinath

MD

Deccan Aviation

Capt. Gopinath, MD, Deccan Aviation explains to CNBC-TV18 that FDI in aviation offers the most benefits to the consumer as it will increase the number of airlines in the sector, lower fares and thus provide more choice.

Below is an edited transcript of the reaction on CNBC-TV18.

Q: Finally, the FDI in aviation has been cleared today after months of discussions back-and-forth. How is this going to impact the sector?

A: I hope the government will not step-back as it had done in the case of the retail sector. The government has shown resolve to silence the harping on indecisiveness. I think it will be very good for customer as it will allow new airlines to enter the fray and increase the competition, provide more choice and offer competitive fares.

Q: Are you looking at the possibility of inducting a foreign investor?

A: Yes, definitely. I had already applied for the licence to the government and the committee has cleared it.

Q: Are you in talks with any foreign investor or airline?

A: Some airlines did evince interest, but nobody has been serious.

Q: Where are these interested airlines from?

A: No, I can't give you details. But they were from all over the world and were very keen. However, they were miffed due to GAAR and treatment meted out to Vodafone.

Q: Do see concerns regarding challenges from the regulatory environment at this point in time?

A: Though the move is good, foreign airlines are still doubtful regarding the tax on overseas investments and these concerns include GAAR and investments via Mauritius.