Will FDI help sinking airlines sector?

One look at the Indian stock market and you will know how relieved investors are with the government's baby steps in ushering reforms. Even ones like FDI in aviation, which is unlikely to bring in economic benefits for a very long time to come. For one, aviation turbine duel (ATF) in India is expensive. This means there is no cost advantage for even a well-funded global airline which might want to operate in the domestic sector. That apart, most Indian airline companies, particularly the listed ones, are in a bad shape financially. To top that, the sector faces numerous structural challenges. Not that every foreign airline is a welcome suitor. But ones that can compete effectively in Indian market have very few choices amongst incumbent players. So it will be quite a while before the FDI policy in aviation endows the sector with any riches. Meanwhile the ailments of the sector are yet to find some cure.