Richard Branson, who controls U.K. carrier Virgin Atlantic Airways Ltd., has sought permission to start a domestic airline in India, where more people have started traveling by air due to economic growth.
Billionaire Branson hopes the Indian government will change its rules on allowing foreigners to run local services, he told reporters in New Delhi today without elaborating.
India's air passenger travel is expanding at about 25 percent a year as economic growth and higher disposable incomes enable more people to shun trains. At least six discount carriers have started flights in the country of 1.1 billion people as air travel growth in India will outpace the global average until 2025, according to government estimates.
Still, India doesn't allow overseas airlines to hold stakes in local carriers directly or indirectly.
The policy of not allowing foreign airlines in Indian carriers will be reviewed, Indian government officials have said in the past, without elaborating.
Kartik Goyal/Bloomberg
