In an attempt to bail out bleeding airlines, the government is considering whether to allow foreign airlines to own upto 49 per cent of Indian carriers. Currently, foreign investors can own upto 49 per cent stake in Indian airlines, but only if they are not in the airline business abroad. What the government is now considering would allow an airline like Virgin, for example, to own upto 49 per cent in a local carrier like Kingfisher - an earlier proposal suggested a cap on FDI at 26 per cent for foreign airlines.
