India pursues fare hikers, considers foreign investment liberalization

India's Director General of Civil Aviation confirmed yesterday that it has written to all domestic carriers regarding the simultaneous airfare increase earlier this week (ATWOnline, Feb. 12), arguing that "there appeared to be no rationale" for the hike when fuel prices "are at the level that they were in 2005." It said the recipients are required to "furnish detailed information. . .along with detailed justification" by Saturday.

Meanwhile, Ministry of Civil Aviation Joint Secretary Arun Mishra said this week that the Indian government "will decide very soon on allowing foreign airlines to buy stakes in domestic carriers," according to The Wall Street Journal. Foreign interests presently may own up to 49% of an Indian airline while foreign carriers are prohibited from investing altogether (ATWOnline, Jan. 15). "It is in active consideration right now at the highest levels of the Indian government," Mishra said. "We are not closed to these requests," from Indian airlines to liberalize foreign investment rules.