To help promote renewed growth in air transport following several years of stagnation, the Indian government has begun accelerating plans to open up the domestic airline industry to market forces. Late last month, the government announced that it would privatize Indian Airlines, the state-owned domestic airline nationalized 47 years ago. Under the plan, 51% of equity will be sold off, of which 26% will be made available to a single investor through a private placement and the remaining 25% to financial institutions, employees, the general public (including nonresident Indians living overseas) and foreign investment companies via an initial public offering. Foreign airlines will not be allowed to take part in the sell-off.
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