Click to play videoNew Delhi: As the Kingfisher crisis deepens, the debate has shifted from whether it should be bailed out to whether foreign airlines should be allowed to invest in Indian domestic carriers. The government remains non-committal.
Civil Aviation ministry could allow foreign airlines to invest in Indian domestic carriers. The Aviation Minister says they could take up the issue when it comes up.
"I have not applied by mind to the Kishfisher problem, I will talk to the civil aviation minister," said Manmohan Singh.
A day after the prime minister's statement, the civil aviation minister is looking at a drastic solution one that has been vehemently opposed by the left. Civil Aviation Minister Vayalar Ravi wants to consider allowing foreign airlines to invest directly into Indian carriers.
"It is not a matter to be decided in a day, the proposal may come and we will consider and get to know what it is," said Ravi.
It will be a political fireball, opposition parties, especially the Left see this as a sellout.
CPM GEneral Secretary Prakash Karat said, "We are opposed to it because the foreign companies over a period of time will buy the Indian ones."
"The government should give bail out package to the common man instead of airlines," said BJP leader Shahnawaz Hussain.
A number of airlines from the middle-east and South East Asia are keen to invest as India is the most lucrative market with a huge potential. But for now the industry is reeling under heavy losses.
Aviation turbine fuel now costs 50 per cent more than last year, rupee depreciation and a fierce competition could lead to airlines in India losing over 10,000 crore rupees estimates the Centre for Asia Pacific Aviation.
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