The government last month asked the carrier to cut costs and restructure the organisation for getting its financial support. Air India is likely to seek Rs.3,000 crore equity infusion from the government.

The airline has also announced that it will launch low-cost services next month to cut operational costs.

The revival of the ailing national carrier was mentioned in the Independence Day speech by Prime Minister Manmohan Singh. He had said that the government was carefully looking into the problems of the carrier.

Air India is estimated to have suffered a loss of Rs.7,200 crore in 2008-09. It is currently overburdened by its working capital borrowings of Rs.17,000 crore and has overdrafts from 15 banks.