NEW DELHI (Reuters) - Indian low-cost airline SpiceJet (SPJT.BO) is in “very preliminary” discussions with various Gulf carriers for possible investments, but any decision will be taken only after the government relaxes rules, a spokeswoman told Reuters.
The Indian cabinet will consider a proposal on Friday to allow foreign airlines to buy stakes in local carriers, moving forward with a much-delayed reform that could revitalize debt-ridden domestic carriers.
Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 percent. If the proposal is approved, foreign airlines would be allowed to buy similar-sized shareholdings.
Reporting by Anurag Kotoky; Editing by Prateek Chatterjee