(FDI) regime in the civil aviation sector has been progressively liberalized
over a period of time. The latest
round was effected in by the Department of Industrial Policy &
Promotion, Government of India in September 2012 by which foreign airlines are
now allowed to invest in the Indian civil aviation sector up to a limit of 49%
under the Government approval route.
of Civil Aviation (DGCA) issued the “Guidelines for Foreign Direct
Investment in the Civil Aviation Sector” which plays the role of operationalizing
the revised FDI regime. It deals with the specific rules pertaining to various
aspects of the civil aviation sector separately: (i) scheduled air transport
service / domestic scheduled passenger airline, (b) non-scheduled air transport
service / non-scheduled airlines / chartered airlines, (c) cargo airlines
(scheduled or non-scheduled), (d) helicopter services / sea plane services, and
(e) maintenance and repair organizations, flying training institutes and
technical training institutes.
activity, the issues pertaining to direct or indirect FDI, rules regarding
management, personnel, information to be submitted to obtain government
permissions and similar matters have been extensively dealt with.