New Delhi, Oct 11 (TIWN) The Civil Aviation Ministry has approved Alliance Air plan to launch foreign operations by starting flights to Sri Lanka even as the airline's parent Air India remains on top of the government's disinvestment agenda.

The move has triggered speculation among Air India employees that government may continue in airline business by not selling Alliance Air. This runs counter to the government's often repeated argument that "government has no business to be in airline business."

"The move suggests government would not sell Alliance Air and continue in airline business. Alliance Air could be an "Indian Airlines" in the making. We are unable to understand then why Air India is being sold," said an executive.

"Perhaps, it wants to keep an airline to serve political interests. Anyways, so many flights have been started after General Elections on recommendations of legislators," he added.