Prime Minister Manmohan Singh will hold a meeting with chiefs of all private airlines tomorrow to discuss the situation being faced by the cash-strapped carriers and other related issues.

Civil Aviation Minister Vayalar Ravi told reporters on the side lines of a function that the air carriers had sought a meeting with the Prime Minister. Mr Ravi noted that the airline sector in the country is running at a loss posing a problem and the Prime Minister is concerned about it.

The Minister said that it is the major institution of connectivity, supporting the development of the country. Mr. Ravi declined to take questions about any special package for the airline industry.

To a query about moves to go for Foreign Direct Investment (FDI) in the aviation sector, the minister said he cannot make any comments since Parliament is in session. He however said that the issue has been discussed in the government.

The Industry Ministry has moved a draft Cabinet note on allowing 26 per cent FDI by foreign airlines in the domestic carriers.