Vijay Mallya said on Monday he has received several enquiries from global carriers for a stake in his Kingfisher Airlines.

However, he would be allowed to proceed only if the government permits foreign airlines to pick stake by changing the existing policy, official sources said.

"I have received several Expressions of Interest from foreign airlines as the Kingfisher network is unparalleled.

However, I cannot give details," Mallya said in a statement, but industry sources indicated that talks between Kingfisher and foreign carriers were exploratory in nature.

As per the present policy, foreign carriers are not allowed to pick stake in Indian airlines. However, the government allows FDI up to 100 per cent in other areas of the aviation sector, like developing of greenfield airports or in cargo and maintenance, repair and overhaul facilities.

Kingfisher last month joined hands with Jet Airways to drastically reduce operational costs by sharing engineering, ticketing, ground handling and other services and both are trying to raise about $400 million to come out of the red.

Mallya, who has been a big votary of large-scale liberalisation of the aviation sector, has written to the government to permit foreign carriers to pick at least one-fourth of the stake in Indian carriers.

"I have requested the government to allow foreign airlines to acquire up to 25 per cent in Indian carriers as I believe aviation should be treated as per international norms," he said.

On the possibility of allowing more private and foreign investment in the aviation sector, Cabinet Secretary K M Chandrasekhar recently told PTI that there was no such plan in the immediate future. 

"The present policy itself is quite liberal. I do not think that there is any such thinking of more liberalisation. At least, I have not come across this till now," Chandrasekhar said.

Mallya said aviation industry should be treated on par with other industries 'where strategic investors can invest.

This will be an enormous wealth creator and (would be able to) secure the future of Indian aviation.'

As the Indian airline industry passes through a major financial crisis, the government has set up a high-powered Committee, headed by Chandrasekhar, to recommend ways and means to help the industry beat the slowdown.

The panel has been tasked to consider the global scenario and practices in the aviation industry and recommend short and long-term measures to enable sustained growth and health of the Indian aviation sector.

With fuel costs a major factor affecting the health of the airlines, government has already reduced the base price of aviation turbine fuel and abolished the five per cent customs duty that was being charged on it.

The committee could soon ask the state governments to lower their sales tax on jet fuel to provide further relief to the beleaguered airlines.

In this regard, the finance ministry is in discussion with the Empowered Committee of State Finance Ministers to find a solution to the entire issue.

The industry is demanding that ATF be included in the declared category list, which will bind the states to tax jet fuel by only up to four per cent.

• Crisis in the skies