Etihad to ‘carefully examine’ India’s new airline investment rules

India announced on Tuesday it will allow 100 percent foreign ownership of its airlines, with prior approval from the government. The previous limit on ownership was 49 percent.

The move was intended to boost air travel and develop new airports in Asia’s third-largest economy, according to a statement issued by Prime Minister Narendra Modi’s office.

Abu Dhabi-based carrier Etihad invested $379 million in Jet Airways in 2013, following a government move to open up the aviation sector to Foreign Direct Investment (FDI).

“Etihad Airways is a committed, long-term partner and investor in India,” the airline said in a statement.

“In 2013, we became the first international airline to invest in an Indian carrier – Jet Airways – under the then-FDI rules.

“We value our strategic partnership with Jet Airways and will carefully examine the Government of India’s decision made on a revision of the FDI rules in the Civil Aviation Sector.”

The new rules also allow more than 74 percent foreign investment in brownfield airports, on condition of government approval.

Dubai-based airline Emirates said it had no plans to buy or acquire an airline in India, but called the country an “extremely important market” for the airline.

“Emirates is a supporter of the Indian Government’s 2020 targets of becoming the world’s third-largest aviation market and reaching 85 million international passengers a year,” it said in a statement.

“In light of that, we believe the National Civil Aviation Policy is significant and includes positive initiatives that aim to address challenges, as well as explore various policy options. 

“India is an extremely important market for Emirates and we will continue to contribute to the growth of the aviation market in India. Emirates has no plans to buy or acquire any airline. We continue to focus on our organic growth, and will partner with other airlines where it benefits our customers and makes commercial sense.”