The Directorate General of Civil Aviation will examine issues relating to domestic airlines tying up with foreign carriers and setting up companies abroad to start international operations.
The move comes in the wake of reports that budget carrier Air Deccan has registered a subsidiary company, Deccan Lanka, in Sri Lanka to launch operations to Singapore, Sharjah as well as to Kochi in Kerala, with three Airbus A-320 aircraft.
"The issue will be examined by the DGCA before the governments take any decision," Civil Aviation Minister Praful Patel told the Economic Editors Conference in New Delhi.
In response to a question whether such a move by an Indian private carrier amounted to bypassing the laid down norms for them to operate globally, the minister said it was "premature to comment" on the matter but the DGCA would examine it before any decision was taken.
Currently, Indian carriers are eligible to launch global operations only after five years of domestic operations and having a fleet of 20 or more aircraft.
Patel said: "The objective of this rule is to provide better connectivity within India."
The Air Deccan subsidiary, being a Sri Lankan company, would operate under their laws and fly from Colombo to South Indian destinations besides other foreign countries.
While 52 per cent equity of the joint venture company is owned by Air Deccan, the rest is held by two other entities including a firm floated by son of senior Sri Lankan leader, Gamini Dissanayake. Air Deccan already has one helicopter stationed in Sri Lanka.
Another new private Indian carrier is also contemplating a similar move to register a company in the United States.