At present, foreign direct investment up to 40 per cent is allowed, but foreign airlines are barred from holding stakes in domestic ones.
According to sources in the committee, the concept of a national flag carrier will not be diluted post-privatisation because the government will continue to hold a 51 per cent stake in Air-India.
However, in domestic airlines, the committee is open to the idea of allowing foreign airlines to pick up only a 26 per cent stake, with the balance 23 per cent held by foreign institutional investors and others.
While Air-India is plagued with management problems and needs the expertise of foreign airlines, Indian Airlines
