IATA Director General view on FDI in Indian aviation sector

Business Line: - Are you in favour of foreign direct investment in the Indian aviation sector?

Tony Tyler, Director General, IATA: - I am in favour of liberalising access to capital everywhere. Almost every country I can think of allows foreign investment in its airlines, although most countries have a limit. In India it is zero, and that is clearly out of line with international practice. Just allowing foreign direct investment will not make it happen because any investor is going to ask: ‘where is my return for the risks on my investment? Will the returns justify those risks?’

Frankly, the Indian Government needs to adopt policies that will de-risk those investments before it makes much of a difference — airport charges, taxation and fuel.