Emirates may invest in 'loss-making' Indian carriers if they get management control
Abu Dhabi, June 29 (ANI): A Dubai-based carrier is planning to make investments in an Indian airline, even a loss-making one, only if it gets management control, a senior executive said.
The comments from Emirates Airline come at a time when global economic uncertainty and growth concerns in India are turning foreign investors cautious.
In the aviation sector, investors are also worried because of a multitude of regulations and high taxes on jet fuel.
"For Emirates, as for any other airline, I think it's important, we are involved in the decision-making in terms of which route we are supposed to go, adding or closing stations, adding or reducing manpower," Majid Al Mualla, Senior Vice-President, Commercial Operations, for West Asia and the Indian Ocean, told Dow Jones Newswires.
According to the Gulf News, India's aviation industry, once considered one of the fastest growing in the world, is now suffering losses, with only one out of every six airlines making profit.
A weak rupee has further hurt the Indian airline industry through increased jet fuel costs, foreign pilots salaries, overseas airport charges and plane lease rentals, the paper said.
Al Mualla said that while profitability of a carrier is a parameter for investing, it can be overlooked if Indian airlines holds enough promise that it can be turned around.
He also said foreign carriers won't invest in Indian airlines unless investors' role is clearly specified.
"Right now, it's very difficult for any airline to decide on any such investment," he added. (ANI)
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