"Our priority is the further expansion of Vistara. However, we will keep our options open with respect to the proposed disinvestment of Air India," Singapore Airlines said in an e-mailed statement to PTI.
Singapore Airlines owns 49 per cent stake in full service carrier Vistara, while the remaining shareholding is with the Tatas.
Besides, the Singapore Airlines group has significant number of flights connecting various Indian cities.
Foreign airlines were allowed to invest under government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital in 2012.
The provision was however not applicable to Air India.
"It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India...," the release said.
Foreign investments in Air India, including that of overseas airlines, should not exceed 49 per cent either directly or indirectly.
"Substantial ownership and effective control of Air India shall continue to be vested in Indian national," the release said.
The government is in the process of finalising the modalities for strategic disinvestment of debt-laden Air India.
"We continue to focus on our organic growth and will partner with other airlines where it benefits our customers and makes commercial sense," Emirates said in a statement.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)