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."

However, it was confirmed by the Senior Government officials that this communication will not carry much importance. Some sources revealed, "Government policy is not decided on the basis of what one individual wants. If such a request is made from all stakeholders of the domestic airline industry and is backed by proper facts and figures to buttress the case, it is a different issue."

As of now, foreign airlines are not permitted by the Government policy to pick up a stake, either directly or indirectly in domestic airlines. However earlier, foreign airlines were allowed to pick up a stake in domestic airlines.

Even the Minister for Civil Aviation, Mr Praful Patel has one on record saying that airlines from India can look at acquiring a stake in international airlines, given the state of some international airlines.

Mr. Kapil Arora, a partner from the consulting firm, Ernst &Young, revealed, "The situation is very serious. Last year the losses were $1 billion. This fiscal for all the domestic airlines put together, it is estimated to be close to $2 billion."

Mr. Aroara held the opinion that over Rs 2,000 crore would be required by both Kingfisher Airlines and Jet Airways for the next 9-12 months to continue their operations.