"The company is in talks with German carrier Lufthansa and Dubai-based Emirates and Qatar Airways, among others," said a second investment banker involved in the deal. "It is very early to divulge more details," he said. "As a company policy, the airline does not comment on market speculation," GoAir's spokesperson said. The Wadia family owns 100% of GoAir.

Many Indian carriers have been scouting for foreign strategic partners after the government allowed foreign carriers to own up to 49% in Indian passenger carriers. On April 24, India's largest passenger carrier by revenue and number of passengers carried, Jet Airways, signed an agreement with Abu Dhabi governmentowned Etihad Airways to sell 24% stake for Rs 2,060 crore to pare its debt. The two carriers said it would make Abu Dhabi a hub for its international flights to Europe. 

The Wadia family, whose interests range from real estate to textile, has been trying to raise money as it rapidly expanded its fleet and connected more destinations. Aviation analysts said GoAir has an advantage as it can quickly scale up as it has placed large orders with aircraft maker Airbus and can provide connectivity with the smaller cities and towns allowing its foreign partner to use it as a hub-and-spoke model.