After allowing FDI by foreign carriers in their Indian counterparts, the Government has put in place provisions to prevent Indian airlines from being controlled and managed by the foreign investor.
Several changes have been carried out in the existing rules or Civil Aviation Requirements (CARs), including one which clearly states that a passenger airline “shall not enter into an agreement with a foreign investing institution or a foreign airline, which may give such foreign investing institution or foreign airlines or others on behalf of them, the right to control the management of the domestic operator.”
It also says that the foreign investing institution or entity including a foreign airline would not have more than one-third representation in the Board of the Indian carrier, official sources said.