Almost three months after India relaxed its foreign investment rules in the aviation sector, international airlines are eying, albeit cautiously, minority stakes in the country's local carriers. Cash-strapped private airlines Jet Airways and SpiceJet are considering selling stakes to foreign companies, says a civil aviation ministry official. While Jet Airways is in talks with Abu Dhabi-based carrier Etihad Airways, low-cost local airline SpiceJet is said to be trying to interest Qatar Airways and Malaysia's AirAsia into taking part ownership.

NEW DELHI — India has warned that it will cancel a contract to buy helicopters from AgustaWestland and impose penalty measures if allegations of irregularities in the deal are proven, although it still has not launched a formal investigation into the matter. The deal to buy 12 AW101 helicopters, mainly to be used by the Indian president, prime minister and other top government functionaries, has been under a microscope after the arrest of a few individuals in Italy for allegedly paying bribes to Indian officials.

NEW DELHI — India on Nov. 28 successfully carried out the first flight of its Jaguar aircraft with upgraded avionics, known as the Darin III. State-run defense manufacturer Hindustan Aeronautics Ltd. (HAL) flew the upgraded version for re-induction into the Indian air force (IAF) after final certification and clearance. “The upgrade will enable the Darin III Jaguar to fly in all weather with air-to-air, air-to-ground and air-to-sea capabilities, using [the] latest avionics and multi-mode radar,” says HAL chairman R.K. Tyagi.