49% foreign airline stake in A-I likely

 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