Decision on FDI in aviation not till May-end: min

New Delhi: The cabinet is unlikely to consider a proposal to allow foreign airlines to invest in domestic carriers before the end of May, a cabinet minister, who asked not to be named, told reporters.

The ruling Congress party’s biggest ally - Trinamool Congress - is opposing the proposal, the minister said, adding that the decision depended on the ally’s consent.

[caption id=“attachment_282901” align=“alignleft” width=“380” caption=“Indian airlines, facing a debt-load of $20 billion and losses of $2.5 billion, have been hurt by high fuel costs and massive competition.”]  [/caption]

Indian airlines, facing a debt-load of $20 billion and losses of $2.5 billion, have been hurt by high fuel costs and massive competition, and are looking for ways to bring in cash to run daily operations.

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Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 percent.

Reuters