The Centre said that it would allow foreign airlines 49 percent stake in Indian carriers, signalling a major shift in the UPA government's policy.
The decision was taken at a meeting between Finance Minister Pranab Mukherjee and Civil Aviation Minister Ajit Singh.
The meeting also decided to immediately impose Rs 150 crore for payment of a portion of pending salaries and allowances to Air India employees, including pilots.
The move to permit foreign airlines to pick up stake in domestic scheduled carriers should come as a major relief to cebt ridden airlines such as Kingfisher.
