Who will benefit the most from FDI

The change in FDI policy is unlikely to solve problems of debt-laden Indian carriers and banks because more reforms are needed to rationalise taxes on ATF to make the sector operationally viable. But given the current situation, SpiceJet, or Wadia Group-promoted GoAir from the unlisted space, could be the biggest beneficiary of the new development

SpiceJet can provide an attractive entry point for a foreign airline given its over 18% share of the domestic market as relatively unimpaired balance sheet. After a spell of five consecutive quarterly losses, the carrier posted a net profit Rs 56.15 crore in the first quarter due to significant growth in operational and financial parameters.

Naresh Goyal, a promoter of second largest Indian carrier Jet Airways (a complex network of companies and financial arrangements) -and Rahul Bhatia's InterGlobe Enterprises-owner of IndiGo which already have the US-based Caelum Investments as its 48% shareholders have never been keen on allowing foreign airlines to invest in Indian carriers.

Jet Airways will not gain as it is already in violation of the FDI norms as the promoter (with 80% stake) is classified as an overseas corporate body. Kingfisher because of large liabilities and IndiGo with 48% foreign ownership as per media articles will not gain anything from it.