It is a debatable issue, foreign airlines stake. USA doesn't allow foreign airlines more than 49% (correct?), there is a rider on management-voting rights too wherein not more than 20% of the board nominees with voting rights can be non-US citizens. It makes sense when u study the takeover of Airlanka management by EK, they paid $40m for a 10yr stake and the first management decision foll takeover was to buy 9 A330s, a $5m discount on each of those A330 would have netted the EK group $45m, profit in first year of management.

Here in this region of the world  most airlines are dependent on India for atleast 25% of their pax to form a critical mass to sustain ops. They have more than a simple investment interest in getting a stake into an indian airline. The likes of SQ and EK are heavily dpendent on the Indian market for traffic, Indian carriers are a threat, not only in the case of Indian pax but also tran-asia/australia pax. The kangroo route is presently seeing a bloody fight between Gulf, European and Asian carriers, throw the lean, mean and low-cost Indian airlines (cash strapped though) alongwith a dozen indian airports supporting their ops and you have a virtual massacare starting there. Thai, Malay, Dubai, Sin all are heavily dependent on 1 single airline with 1 single hub supporting their tourist economy. With half-dozen indian airlines, alongwith swanky new half-dozen metro airports with potential to expand ops are likely to cause grief to these small state players and their airlines.

Alliance, merger or acquisition of domestic airlines by these regional behemoths aren't going to help with bringing any best practises home. Firstly, most of them operate in a totalitarian administration so their exp of smooth ops has not been exposed to the brutal inspection of various agencies operating in a truly democratic system ( better or worse) as in India. Secondly unlike other industries involving manf, power generation etc where there is a large dependence on R&D the issue of tech transfer doesn't arise here. Anyway, Indians have proven their worth in EK & SQ as well as heading many majors like UA & US Airways, not to mention Kale asso from India, the leading players in revenue management.

Yes the airlines in India desperately need capital, the question is how do they get access to it without being manipulated by airlines with vested interests in Indian aviation growth.