``The group is in talks with a couple of foreign airlines including Singapore International Airlines (SIA) for the 40 per cent stake in the national carrier,'' Tata Sons chairman Ratan Tata said at a press conference here on Thursday.

The Tatas will be the majority partner in their tie-up with the foreign airline for the bid, he said, adding that many foreign airlines have approached them. He, however, said that the group was not in talks with either British Airways or Virgin Atlantic. A decision has not been made as to which group company will put in the formal bid.

Replying to a question whether he anticipated any government interference after disinvestment, Mr Tata said the shareholders' agreement with the government will have to be such that the strategic partner is allowed to run the airline. ``The control of operations is an important factor for us.''

Mr Tata said that there is huge potential to be tapped as there are over 12 million passengers flying to and from the country, but all carriers including Air India are at present providing around 5 million seats. ``We also see a potential in India being a major tourist destination.''

Asked why the Tatas are not making efforts to pick up the entire 40 per cent stake, Mr Tata said an international carrier had to compete with the best in the world and thus would require a host of inputs which only a world class partner (airline) can give.

These inputs may be an expansion of the fleet, maintenance and certain procedures or standards to be established in the industry. ``Air India has to play a much more aggressive role in the bilateral regime and compete very aggressively. It is a very exciting proposition,'' he added.

Asked about the source of funding for the fleet expansion, he said that it may come from leasing or suppliers' credit. ``At this point the group has no plans to participate in the disinvestment programme of Indian Airlines or Hotel Corporation of India, (a a subsidiary of Air India).''

Mr Tata said Air India had been allowed to become an `ethnic' airline and bonafide passengers were keeping away due to various reasons like on-time performance. ``The ethnic airline image has to go,'' he said.

Emotionally commenting that he wished Mr JRD Tata, the founder of Tata Airlines, had been alive today while the Tatas were once again pinning hopes on running the flagship carrier, the group's chairman said asset evaluation of Air India will only be done after the package is received once the expression of interest is made.

Responding to a query about his past attempts to enter the sector, he said vested interests, and not the government, had kept the Tatas out of the aviation for three years. ``I opted out because for three years we were complying with the government policy but were still being held back. We dealt with three governments; it was not the government but vested interests which did not want us in. This time, the government is wanting to disinvest and wants a strategic partner... we hope this will be a transparent process,'' he said.

Asked whether a domestic company on its own try to pick the full 40 per stake would have a better chance, Mr Tata said: ``I don't know what weightage or bias the government will have. They should see what enhances Air India's value. The entire 40 per cent equity being held by a domestic company could become an issue with the government.''

He said the issue of bilateral rights resting with Air India after disinvestment will have to be also settled as it would make a major difference. The government had recently said that the Air bilaterals will be with it and not the airline. Mr Tata said it could take six to seven years in the turnaround of Air India. ``The extra staff in the airline was because it had shrunk its operations. But once the fleet is expanded, the flab would be less,'' he said.

Mr Tata, who had been chairman of Air India board in the past for three years, said the greatess weakness in the flagship carrier is that the people who work there did not possess a sense of pride and commitment.