FDI only applies to publicly traded companies in India and indigo is not publicly traded, hence the foreign 49 percent.
You still are not addressing the poor infrastructure, atc, red tape costing these airlines millions and promoting poor public images. In my four years in India I saw only a handfull of delays due to company issues. The government posts delay stats in the paper and fines airlines for habitually delayed flights, which are delayed due to atc and facility problems which the government controls. They put a stat on the news that jet has the most delays out of Mumbai without qualifying they have the most flights out of Mumbai. No percentages or reasons for the delay.
The latest government demand under review is for all airlines to have feeder aircraft to connect to smaller cities, without even an ounce of thought towards costs of buying new aircraft, staffing, maintaining, operating. Having this much control over the private sector business is not going to build a healthy industry ego or no ego.
I agree the ego played a major role in the impending demise of kingfisher and the financial problems of jet, but they are not only two suffering and the government in India makes it more difficult every step of the way. Have you been to the dgca office? It would be condemned as an unsafe fire hazard in most parts of the world. In no way can a efficient administration be run in a building like this. The tax money for these kinds of things isn't going where it should be. Ego in the government is just as big if not bigger than the CEOs of these airlines.