NEW DELHI, April 20 The Indian cabinet is
unlikely to consider a proposal to allow foreign airlines to
invest in domestic carriers before the end of May, a cabinet
minister, who asked not to be named, told reporters.
The ruling Congress party's biggest ally - Trinamool
Congress - is opposing the proposal, the minister said, adding
that the decision depended on the ally's consent.
Indian airlines, facing a debt-load of $20 billion and
losses of $2.5 billion, have been hurt by high fuel costs and
massive competition, and are looking for ways to bring in cash
to run daily operations.
Under current rules, foreign airlines are barred from buying
stakes in domestic carriers, although foreign investors are
allowed to hold a cumulative 49 percent.
(Reporting by Nigam Prusty and Manoj Kumar; Editing by Aradhana