SIR RICHARD BRANSON is talking to Indian domestic airlines about buying half stakes in carriers as part of his plans to break into that country’s lucrative air travel market.

Sir Richard said yesterday that Virgin hoped to take 49 per cent stakes in domestic airlines as part of a strategy to invest in the fast-growing economy of the sub-continent.

He told a hearing at the Civil Aviation Authority: “We are planning to do a lot in India. Virgin Group are in discussions with a number of domestic airlines about taking 49 per cent stakes in airlines.”

Sir Richard made his comments on the second day of a hearing designed to divide up 21 new flights to India among British Airways, Virgin Atlantic and bmi.

Because law prevents foreign airlines from buying stakes in Indian carriers, any investment would have to be made by Virgin Group, the holding company that owns 51 per cent of Virgin Atlantic.

Sir Richard declined to name the Indian carriers that Virgin was talking to, but said that Air Deccan had approached the company. Virgin has also been linked with Jet Airways and Air Sahara.

Virgin Atlantic flies three times a week to Delhi under a code-sharing deal with Air India. This is to expire next month and Virgin wants 18 of the 21 new flights on offer in a new agreement between the UK and Indian governments.

Virgin Atlantic has lost money on its India service. “If we get to daily then it will be a profitable route,” Sir Richard said.