Indian Prime Minister Manmohan Singh is expected to meet al the heads of the domestic airline companies on Saturday.

Even as the agenda of the proposed meeting is not known, it is expected that Dr. Singh will discuss ways to assist the cash-strapped airline companies in the country and address other concerns in the aviation industry.

Domestic airlines like Kingfisher, Jet Airways and Spicejet have reported losses due to rising costs of fuel and operations. Kingfisher is cancelling hundreds of flights as it is unable to pay oil firms for fuel while Jet Airways has been advised to raise funds.

The Indian aviation sector is seeing a difficult quarter and the falling value of rupee has contributed t the worsening condition. Some domestic carriers have been asking the government to relax its terms to allow foreign firms to invest more freely in domes airlines. The opening of the sector to foreign airlines for investments will bring in much needed funds for cash strapped carriers like Jet, Kingfisher and others.

The PM might also discuss a proposal to allow foreign direct investment (FDI) by foreign airlines in Indian carriers. The Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry has recommended allowing 26 percent foreign direct investment (FDI) by foreign airlines in domestic carriers. The government now allows 49 per cent FDI in Indian aviation companies, but do not allow foreign airlines to own stake in India's carriers.

"Private sector companies have to be managed efficiently but if they get into difficulties we have to find ways and means to get them out of the process," the PM ad said while supporting a plan to assist Kingfisher.