India allows foreign investors to buy 100% of local airlines

India will allow foreign entities such as funds and portfolio investors to fully own local airlines, raising from an earlier cap of 49%, in a bid to lure investment. Foreign investment limits in commercial airlines will be increased to 100%, with anything above 49% needing approvals, the govt said Monday. Prime minister Narendra Modi’s administration, however, decided to keep the restrictions on foreign airlines’ stake in local operators at 49%. The rule changes follow days after Modi unveiled a new aviation policy that made it easier for domestic operators to fly abroad. Although the revamp won’t allow SIA or AirAsia or Etihad to raise their stakes in local ventures beyond 49%, they can still join hands with overseas investors to set up a fully foreign-owned airline. <br/>