100% FDI in aviation: Future domestic airline completely foreign owned? ICAO clears fog

• Posted in Aviation
• on July 20, 2016
• No Comments.

The International Civil Aviation Organization, a United Nations body that sets guidelines and standards for the sector, has allayed concerns that a foreign-owned airline operating from India may have legal and procedural issues in obtaining seats under bilateral rights for flying abroad.
The air service agreements (ASAs) signed between any two countries usually mandate that airlines from either country have their substantial ownership and effective control (SOEC) vested with citizens of the particular country.
These ASAs are based on International Civil Aviation Organization (ICAO) template and even though they are not binding, most countries include it in their bilateral rights agreements. “It is up to the concerned states to negotiate and agree on what criteria or requirements they would apply for the designation and authorisation of their airlines to operate the agreed air services. Even for those air service agreements which contain a ‘nationality clause’, states have the discretionary right to decide if they would apply or waive it on a case-by-case basis,” ICAO told FE in an e-mailed response. DeVante Parker Authentic Jersey

Share This