Copenhagen - Overnight talks appear to have salvaged an attempt to sell off bankrupt low-cost carrier Sterling Airlines, liquidators and unions said Wednesday.

The news came after liquidators on Tuesday afternoon said they had ditched an attempt to sell the Danish-based Sterling Airlines as a single entity over union opposition.

However, talks resumed later and have breathed new life into the efforts to save 430 jobs, a third of Sterling's staff of some 1,100 employees.

The Government has been requested by Mr. Vijay Mallya, chairman of Kingfisher Airlines, to permit the foreign airlines to pick up a minority stake in domestic airlines.

Mr. Mallya reported, "I have requested the Government to allow foreign airlines to acquire a stake of up to 25 per cent in Indian airlines. I believe aviation should be treated at par with international norms and other industry sectors where strategic investors can invest. This will be a wealth creator and secure the future of Indian aviation."

Sydney  - The amazing run of technical problems at Qantas Airways Ltd continued Tuesday with a clanger in the hangar at its Melbourne maintenance base.

Qantas engineering general manager David Cox said two Boeing 747s had "come into contact with each other during towing this morning" and that "both aircraft did sustain some damage and the extent of this is being assessed."

One of the bashed jumbos was in for extensive repairs after an emergency landing in the Philippines capital Manila July 25. An oxygen cylinder exploded, punching a

Paris  - A four-day strike called by unions representing pilots for French carrier Air France was severely disrupting domestic and international flights on Friday.

Air France said at least 40 per cent of scheduled long-haul flights and half of its short- and medium-distance flights would be cancelled. The company warned that last-minute flight cancellations were also possible.

The job action was called to protest the increase of the retirement age for pilots from 60 to 65, and is to last until midnight on Monday.

On Thursday, in an open letter to the pilots, company head Jean-Cyril Spinetta said the job action would cost the company up to 100 million euros (125 million dollars).

Baghdad - A civilian cargo plane carrying six crew members and one passenger crashed in western Iraq on Thursday, a US military spokesman said.

According to the CNN website, either a mechanical failure or a pilot error appeared to have caused the accident.

Despite affirming that there was no high-profile coalition personnel on board, the spokesman said the status of the crew members was not yet known.

It was reported earlier on Thursday that an airplane made an emergency landing in Anbar province, south of the city of Fallujah, a bastion of Iraqi militants.

Vienna - The takeover of Austrian Airlines AG by Deutsche Lufthansa AG is expected to be concluded by the end of the year, the Austrian state holding OeIAG announced Thursday.

Since Air France-KLM and Russian carrier S7 did not submits offers conforming to the specifications of the bidding process, OeIAG said, it would now enter into exclusive "closing talks" with Lufthansa about selling its 42.75-per-cent stake.