The Reserve Bank of India has granted general permission to foreign airline companies under the Foreign Exchange Regulation Act, 1973 to carry on their commercial activities through their local agents on certain conditions. The foreign airline companies will now be able to carry on their commercial activities, such as, transportation of goods and passengers, and collection of freight charges and fares for online and offline operations through their local agents without obtaining prior approval from the Reserve Bank.

To operate under general permission, the foreign airline should have obtained a permission from the Director General of Civil Aviation in respect of online operations; and there should be a bilateral air service agreement between the Government of India and the Government of the country of incorporation of the foreign airline company in case of offline operation.

Notification No.FERA-202/99-RB dated April 15, 1999 issued in this regard is available on the internet at http://www.rbi.org.in.

Press Release : 1998-99/1319