Air India is in a "wait-and-see" position regarding its interest in taking a stake in Serbian flag carrier Jat Airways, which also has caught the eye of Aeroflot. "We were talking with the [Serbian] government, but we haven't taken any clear decision" on whether to invest in Jat, AI Chairman and MD V. Thulasidas said. Belgrade does not appear to be targeted as a European hub for the carrier.

"We already have hubs in Europe, and Frankfurt will be developed as our hub in the future," he said, adding that Air India is more concerned with its merger with Indian Airlines than investing in foreign carriers or making an alliance decision, although it is exploring adding services to countries such as Switzerland and Italy. Integration is expected to be completed in 18-24 months. "After the merger we will become one of the biggest airlines in Asia," Thulasidas said.