Civil Aviation Minister Vayalar Ravi has said that his ministry is considering the recommendation of the Department of Industrial Policy & Promotion (DIPP) to allow foreign carriers to pick up stake in domestic airlines.

Ravi said that it will communicate the decision of allowing foreign airlines to pick up stakes in Indian carriers will be communicated to the DIPP shortly.

Currently, foreign direct investment (FDI) is not allowed in airlines but carriers which have been posting losses in the past few financial quarters have been looking at foreign investors for a turnaround.

“Airline business is cyclical in nature and we have had a huge cash burn in the past few months due to the lean season, it is only last month that travel demand has picked up due to the onset of holiday season,” says an official with a full service carrier who further adds that in volatile market condition it is very difficult for airlines to raise money, hence if international carriers are allowed to invest in Indian airlines, it will help us to improve our operating and financial position.