State-owned Air-India has decided to tap the capital market through a public offering to partly fund its fleet acquisition. The board on Wednesday accorded an in-principle approval for an initial public offering, subject to government approval, A-I said in a release in Mumbai.

If the government approval comes through, Air-India would be the second national carrier to tap the capital market. On March 30, the Indian Airlines board gave its nod to float a public offer to raise resources from the capital market.