Foreign investors allowed to own 49% of Air India in privatisation plan

Foreign investors will be allowed to own 49 per cent of Air India when it is privatised, New Delhi decided on Wednesday, opening the path for companies such as Singapore Airlines to take a stake in the country’s flag carrier.

The Indian government announced it would allow foreign companies to take a non-controlling stake in the struggling company as part of long-running plans to sell it off.

Singapore Airlines is one of the foreign companies which is most likely to bid. Leslie Thng, chief executive of Vistara, which is an Indian joint venture between Tata and Singapore Airlines, said last week the two companies were open to making an offer for Air India.

Meanwhile, Indian ministers also decided to make it easier for foreign retailers to set up in India, without having to partner with local companies. The cabinet in New Delhi said foreign investors would no longer require government approval to invest more than 49 per cent in an Indian single-brand retail business.

Read more: Air India draws up privatisation plans