The move to liberalise the FDI norm in domestic airlines has to be seen in the context of the financial troubles that most domestic airline companies are embroiled in.
"Though this is an infinitely better option than a bailout using public funds, the reality is that there might not be too many takers among foreign airline companies for this." If the government is keen to rescue the airline industry, there are other things that it could do, discussed in this article
The Hindu : Opinion / Editorial : FDI in the sky
The last thing the government should do is throw good money after bad, especially when it belongs to the public.
A really good article... Loved it... I think sometimes if the bad mixes with the bad a good happens...
ReplyDeleteMaybe Government is hoping something like that happens by allowing FDI in airlines...
Kingfisher may partner with other airlines who are also doomed and they may collectively grow...