Another proposal is to raise the limit of foreign investment in the airlines, which is expected to report combined losses of over Rs 8,000 crore this year on top of Rs 4,000-crore losses in the last fiscal.
Current rules allow up to 49 per cent foreign equity participation and bar foreign airlines from investing directly or indirectly in Indian airlines.
The officials would like this rule to be relaxed to help the airlines gain access to funds which they needed not only to stay afloat but also to fund their fleet expansion plans.
In a tight money market, the airlines are trying to raise up to Rs 10,000 crore to fund their ongoing fleet expansion plans and for working capital requirements.
Air India, alone, wants the government to pump in over Rs 2,000 crore in equity, soft loans and bridge loans to fund its aircraft purchase and as working capital.
