Tax, policy concerns may delay FDI in airlines

The government has cleared the decks for foreign direct investment (FDI) by foreign airlines into India’s air carriers, but foreign players will not be in a hurry to sign up deals with Indian promoters due to concerns over high taxation and policy stability in India, according to experts. Among the foreign carriers, the Abu-Dhabi-based Etihad and Qatar Airways are keen to expand their footprints in India and challenge Emirates, which is the largest foreign airline operator in the country. Both these airlines have held informal talks with Kingfisher Airlines and SpiceJet. “The Gulf carriers’ risk assessment will weigh on whether