FDI in aviation: short-term turbulence but a long-term outlook for India

All-round economic development and prosperity in the developed and fast-developing countries in all around the world, have now made the aviation sector rather huge, sophisticated, and open to foreign investors, in most of these countries. Both domestic and international air travels and tourism have been now much more amplified and enriched, in most of such countries. Opening up of foreign investments in Indian Aviation Industry has led to positive as well as negative opinions in the Industry. FDI will definitely bring in much needed cash, technology, state of art services etc. But, the main concern lies on the fact that whether only cash infusion by FDI will solve all the problems of our ailing aviation industry or will it be a booster to all the required changes in our basic infrastructure, taxation policies, pricing policies etc. This paper tries to bring out the loopholes present in our Indian business models and compares the present global business models with Indian business models. The paper also tries to carve out an ideal business model for our aviation industry so that we can stand apart in the global aviation business and create a niche for ourselves by bringing out the necessary changes.