The government of India is certain to refuse a Qatar Airways’ plan to start a new airline in the nation within the current investment scenario. This has been revealed by a newspaper who quoted an aviation official in Qatar.
According to other reports, the current laws in India do not allow an airline to be owned completely by people from Qatar. As per the current policy of the Indian government, Indian nationals must have effective control and substantial ownership of the airline. As such, Qatar Airways must comply with this regulation. If Qatar Airways wants to have over 50% of substantial ownership, it will end up violating the policies.
The secretary of the Ministry of Civil Aviation, India, has stated that Qatar Airways has not submitted any formal proposal so far.
However, the secretary mentioned that it is not currently possible for an airline to be completely owned by Qataris in India which is what, the Chief Executive of the Qatar Airways, Akbar al-Baker wants.
Instead, an airline whose 51% is owned by an Indian and the rest 49% by foreigners is a possibility.
According to the Foreign Direct Investment rules of India for the civil aviation sector, 100% FDI is available for domestic scheduled passenger airlines or scheduled air transport services via the automatic route. However, the investment will have to be made by non-resident Indians. In the case of other persons or entities, 49% FDI via the automatic route is possible. For anything beyond, government approval will be needed.