The CEOs of private Indian airlines are slated to meet the Prime Minister, Dr Manmohan Singh on Saturday to discuss the problems being faced by some loss making carriers in the country.

Allowing foreign direct investment (FDI) in domestic carriers, import of jet fuel, flying on loss-making routes and a package deal are likely to be discussed by the chiefs of private carriers with the Prime Minister.

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

The Group of Ministers (GoM) would meet soon to discuss the issues relating to Air India and other carriers.

“The Prime Minister has expressed concerns over loss-making carriers. He is interested in maintaining air connectivity. He has been good to spare time to discuss with the chiefs of private domestic carriers,” said the Union Minister of Civil Aviation, Vayalar Ravi at the margins of a meeting on Overseas Indians here on Friday.

The Reserve Bank of India (RBI) on Thursday approved a financial restructuring plan for cash-strapped Air India at a meeting attended by officials of Air India, RBI and SBI Caps.

Welcoming the RBI’s move Ravi said : 'I think things would move in a positive direction.'

The RBI has eased the debt servicing burden of the cash-trapped and loss making national carrier by which the loan repayment period has been extended to 15 years from earlier 10 years.

Air India has accumulated debt of over Rs 64,000 crore from 14 lenders which under the aegis of SBI Caps, had submitted a restructuring proposal to RBI seeking its permission to extend the loan repayment tenures, among other issues. Out of the burden of Rs 64,000 crore, over Rs 22,000 crore are accumulated losses while Rs 40,000 crore amounted to the loans taken for aircraft acquisition.

Under the approved Corporate Debt Restructuring (CDR) plan a debt sum of Rs 11,000 crore would be rescheduled for repayment within a period of 15 years instead of the earlier 10 years while Rs 7,000 crore debt would be converted into equity.

'Our officers have discussed the issue with them (RBI officials) and explained the situation. They (RBI) made some suggestions,' the Minister said but refused to further disclose the details of the meeting.

The Minister refused to answer a query on whether the government will allow Kingfisher Airlines to import jet fuel. 'A policy decision will be taken,' he said.

On the possibility of another agitation by the pilots of the erstwhile Indian Airlines on November 30, he said the pilots should wait for the report of the Dharmadhikari Committee which was looking into their grievances. He said that the airline lost Rs 200 crore during the agitation by the pilots in May.