"Discussions are on", a senior I-T official told PTI here on condition of anonymity.
"They are being discussed at an appropriate level", the official added but declined to go into details.
Kingfisher has been suffering from a severe cash crunch that has culminated into the Income Tax authorities freezing its bank accounts last week on grounds of non-payment of tax dues.
The airline has blamed the freeze by the Department as the main reason for flight plan curtailment in the last few days, over which the aviation regulator DGCA has planned punitive action.
The airline has also sought fresh infusion of funds from 13-banks consortium led by State Bank of India to tide over the crisis.