Foreign Direct Investment in Aviation
Ever-growing national and international tourism for diverse purposes has widened and enriched the aviation sector of most of the major and fast-growing economies of the world. The aviation sector of India is outstanding among these. Therefore, foreign direct investment in aviation sector of these countries is highly profitable and secure. The fdi in indian aviation, is especially lucrative, because of the following reasons.
India's Aviation sector and its domestic aviation market both have been growing fast at high rates in the recent years. India is currently the ninth largest aviation market in the whole world, according to a RNCOS Report, and is very hopefully expected to emerge among the top five biggest aviation markets of the world by the year 2020. The magnitude of passenger traffic, both domestic and international, handled by the aviation sector of India, is about 100 million every year, and is growing fast further at striking growth rates more than 15%. The growth of its domestic market, too, is among the highest in the world (according to a recent report published in June 2011 by the International Air Transport Association, IATA), and has the potential to become the third largest domestic aviation market (with over 450 million mark of domestic passengers) by the year 2020, after that of USA and China.
To support and promote growth and prosperity in the Aviation sector of India, the Department of Industrial Policy and Promotion (DIPP) and the Government of India, are now planning to increase the FDI cap for foreign investors in the domestic airlines, from 24% to 26%. The foreign direct investment in aviation up to 49% is permissible in India, but foreign airlines were not permitted to invest in any domestic airline company. This increment legislation proposed by DIPP would allow the foreign investors to have voting rights in the board of an Indian carrier. Thus, in near future, the fdi in indian aviation is to be increased rapidly.
FDI in Aviation Sector in India
After the liberalization on foreign investment rules in the aviation sector of India, the number of national and international players and investors, and number of aircrafts (passenger, cargo, charter, etc), both are to be increased further, in forthcoming years. Today, there are about 15 scheduled operators operating nearly 500 aircrafts which connect the nation and the world. Global Jurix one of the globally prominent full-fledged legal organizations of the world, offers the following services for advantageous and sound foreign direct investment in aviation sectors of emerging and leading aviation markets, including India:
- Airline Start-ups and Certifications
- All mandatory Compliances to Governmental and Regulatory Authorities
- Aircraft Finance
- All Commercial matters and disputes related to aviation
- Sales, Purchases, and Leases of Aircrafts
- Aviation Privatization
- Airplane Manufacturing and Repairing
- Aviation Contract Disputes
- Passenger and Cargo Carrier Representation
- Airport Representation
- Air travel Safety and Security
- Aviation Insurance
- Aviation Accidents and Airplane Crashes
- Personal Injury and Wrongful Deaths
- And, other matters, disputes, and litigations of the aviation sector.