New Delhi opens door for foreign investment in Air India

The Indian govt has approved several amendments to the country's Foreign Direct Investment policy, including one that allows foreign airlines to control up to a 49% stake in Air India. New Delhi says its intention is "to liberalise and simplify the FDI policy so as to improve ease of doing business in the country." Meanwhile, substantial ownership and effective control of Air India shall continue to remain with Indian nationals. This format is followed by both Tata Sons' joint venture airlines, where SIA has a 49% stake in Vistara and AirAsia a 49% stake in AirAsia India. The move could increase Air India's attractiveness to foreign airlines, as New Delhi undergoes a process to divest the carrier. IndiGo has stated its intention to acquire Air India's international operations, while Vistara's interest has been widely reported. <br/>