The Government is all set allow foreign airlines to take up to 49 per cent stake in the domestic airlines. Civil Aviation Minister Ajit Singh said a Cabinet note will be prepared in this regard. Mr Singh met Finance Minister Pranab Mukherjee over this issue in New Delhi on Tuesday.

Talking to reporters after the meeting the Civil Aviation Minister said that FDI is one of the options to help survive the Aviation industry.

Mr Ajit Singh said, a Group of Ministers will be soon constituted to look into the restructuring plan for the public carrier.

Regarding the airlines' demand to allow direct import of jet fuel, the Minister said a Committee of Secretaries has recommended that direct import may be allowed. In that case, the airline companies would not have to pay sales tax. The issue will also be placed before the GoM.

The Minister said, the government has decided to immediately release 150 crore rupees for payment of portion of pending salaries and allowances to Air India employees, including pilots.