Civil Aviation Minister Praful Patel on Monday expressed the hope that the airline industry is likely to rebound by 2011.

India may join seven other nations and the European Commission which have signed an agreement to liberalise state control, enabling their airlines to access foreign capital and seek mergers and acquisitions worldwide.

A section of Air India Executive pilots on Friday threatened to go on an agitation in protest against the up to 50 percent reduction in their productivity-linked incentives (PLIs) just days after Jet Airways pilots resumed work after going on a strike.

The government will consider the issue of infusing equity into ailing Air India shortly, Civil Aviation Minister Praful Patel said on Wednesday.

The fall in domestic air traffic seemed to have stabilised with official figures on Monday showing a marginal increase of 30,000 in passenger load in August from the previous month.