The fate of Indian aviation Industry might soon improve with the intervention of prime minister Manmohan Singh. Singh is expected to meet the airlines’ chiefs on Saturday to find a way out to help troubled airlines.

The meeting has been called to look for a way out to resolve the airlines’ financial health.

Singh has called the heads of all airlines of the country to find ways to help the cash-strapped carriers and to discuss and resolve other industry issues.

The meeting with the chiefs of airlines was decided on Thursday. In the recent years, it will be the first meeting between the prime minister and airlines chiefs.

It is expected that the most prominent airlines will be there in the meeting with the PM. It is also expected that troubled airline Kingfisher’s www.governancenow.com/views/columns/kingfisher-or-flock billionaire chief Vijay Mallaya, loss-making Jet airways chief Naresh Goyal and Indigo chief Rahul Bhatia will be present in the meeting.

Various promoters from other airlines have also been invited in the meeting as airlines industry is going through a tough time.

Bharatiya Janata Party has raised concerns over Singh meeting private airlines chiefs. BJP has said that the private airlines should not be given any government grant or bailout.

It is also expected that the issue of investments by foreign airlines in domestic carriers will also be discussed in Saturday meeting. After Kingfisher’s crisis a lot has been discussed over FDI in aviation industry.

The announcement by the prime minister to meet airlines chiefs is stoking optimism in the aviation industry.

Meanwhile, the Reserve Bank of India (RBI) has approved state-owned Air India Ltd’s financial restructuring plan with conditions. The group of creditors led by State Bank of India has been instructed to (SBI) to take the process forward.

A source reveals that the RBI has written to the SBI and Air India to meet on Monday to discuss the plan further.

As per the proposal from Air India, financial restructuring process will take around four months. The first installment infused will be of Rs 6,850 crore. The banks will also ease the terms of working capital and aircraft purchase loans given to Air India.

In last three years, Air India has received a total of Rs 3,200 crore in equity infusions and the airline has a short-term debt of Rs 27,000 crore. In addition, it has a debt of Rs 42,000 crore in order to buy planes.