Although the Indian government has now passed the increase in foreign direct investment (FDI) by foreign airlines into India’s air carriers, analysts do not expect foreign players to pile into Indian airlines due to concerns over high taxation and policy stability in India. Nevertheless, the first foreign carriers to increase their reach into the country are like to be Middle East carriers including Etihad and Qatar Airways, which have both already held informal talks with Kingfisher Airlines and SpiceJet. International Air Transport Association (Iata) has welcomed the move to liberalise the country’s aviation policy but warned that the “high-cost environment,

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