Addressing a press conference here on Wednesday, he said Air-India has been asked to draw up a revival plan which will include the airline's present status and future plans.

The ministry will come out with a new civil aviation policy in a couple of months, Yadav said.

The new policy may take a different stand on the issues such as foreign equity participation in AI, management control of the airline after the divestment and the privatisation of other government-owned entities including Airport Authority of India (AAI) and Pawan Hans Helicopters Ltd.Government's stand on foreign equity in the domestic airline, however, may not change, he said, adding, "There is no plan to allow the foreign equity in the domestic airlines,".

"We would soon examine the status of Indian Airlines, Airport Authority of India and Pawan Hans and prepare a revival strategy for them shortly," he said.

The ministry would also explore the possibility of making these organisations viable without participation from a private partner, he said.However, the Government is not totally averse to the idea of inviting private participation, if required, he said, adding, with improved performance the companies can attract better price. The ministry is now holding talks with the management of these organisations and would soon initiate discussions with the employees. All these organisation have their own problems and these need to be addressed, he said.

Development of airport infrastructure is high on the agenda of the ministry, he said, adding, the aviation industry is not only one of the major source of foreign exchange earnings but also provides employment to a large number of people. On the issue of excess employees, he said the matter would be discussed with the employees and also with the management to arrive at a mutually-agreeable solution. On privatisation of the existing airports, Yadav said the ministry would re-examine the number of airports to be corporatised.

The ministry also plan to work in union with the tourism department as increase in tourism will benefit the aviation industry. "We not only would focus on the existing tourist destinations but also help promote the new ones," he said.

Cash crunch may delay airline's disinvestment
The disinvestment of Air-India may be delayed due to cash crunch. The Centre does not have the required funds to make initial investments in the airline as suggested by the Disinvestment Commission, according to union civil civil aviation minister Sharad Yadav.

In view of the financial crisis faced by the Centre, the AI's disinvestment proposal would be re-examined and would be discussed in the cabinet shortly.While the Government is not averse to involving private/foreign partner, it would retain "full control" of the company. Explaining this further, civil aviation secretary Ravindra Gupta said, "Management of the company would remain with the Indian nationals."

"No country gives away ownership of its national carrier to a foreign company," said Gupta reiterating that Government and Indian shareholders will hold the majority stake in the airline.

Yadav said the Government is working on a new civil aviation policy and all these issues, including the Disinvestment Commission recommendation and the Kelkar Committee report would be examined.

The decision on the issues such as proposed expansion of the AI, purchase of new aircraft by the Indian Airline and restructuring of the AI routes is also part of the overall revival plan, he said.

On the open sky policy, Gupta said the Government has taken a firm view that it is not accepted in its present form. However, the Government has proposed bilateral talks with foreign airlines to review their present agreement.