Branson ready to buy Indian airline stake

NEW DELHI - British billionaire Richard Branson could qualify to buy a stake in an Indian airline in his personal capacity under India's existing foreign investment regulations, a top Government official said.

Branson, whose Virgin Atlantic Airways is one of Britain's top carriers, said at the weekend that he was personally looking to buy between 25 and 49 per cent stakes in an Indian airline to get around local regulations that prevented foreign carriers from buying stakes in domestic airline firms.

India allows up to 49 per cent foreign equity holding in domestic carriers but these cannot be held by a foreign airline. The stakes cannot be held indirectly by a foreign airline either.

Ajay Prasad, the top bureaucrat in India's Ministry of Civil Aviation, told reporters on the sidelines of an industry seminar that investments by foreign individuals in an Indian airline could be considered even if they owned foreign carriers.

Branson said his investment in an Indian airline would be made with "his personal hat on, rather than an airline hat".

The entrepreneur said he was talking to two existing Indian carriers to buy stakes and two others, that are poised to launch services, to gain access to the growing economy.

Boeing has forecast air travel demand within India to rise nearly 9 per cent annually for the next 20 years as incomes rise at a fast clip.

- REUTERS