In an op-ed piece, NBAA president and CEO Ed Bolen challenged the Washington Examiner’s “mischaracterization” of long-standing tax deprecation policies on the purchase of business aircraft as a “loophole.” “Some in Washington are trying to score political points by characterizing business aviation as a convenience, or even a luxury, rather than a necessary tool for competitiveness,” Bolen said. “In fact, for businesses, an aircraft is as much a necessity as a computer.
Foreign direct investment
Indian commerce minister Anand Sharma announced the raising of the country’s cap on foreign direct investment (FDI) in 13 important industrial sectors, including defense. But while the defense industry was expecting the cap to be raised to 49 percent from the present 26 percent, Sharma said that defense proposals for more than 26 percent will be permitted only for state-of-the art technology.
As vendors await the announcement of belated contracts, India continues to grapple with its ever-changing defense procurement policy, with the latest–DPP 2013–announced and effective from June 1. The focus of DPP 2013 is on buying Indian defense products, even though these can fill only a fraction of the country’s requirements.
The Indian government has finally given in to demands to ease restrictions on foreign direct investment (FDI) in the country’s struggling airlines. The unexpected September 14 announcement clears the way for foreign carriers to take up to a 49-percent stake in Indian operators, with the exception of government-owned Air India. However, industry and financial analysts indicated to AIN that they view the policy U-turn cautiously, warning that it won’t necessarily mean salvation for cash-strapped carriers.