He said if the management remained adamant, the employees would go on strike again next week.

The striking employees, about half of Air India's staff strength, are affiliated to two major unions -- the ACEU and the Aviation Industry Employees Guild (AIEG). The rest are members of other unions.

An Air India spokesperson said in Delhi that the flight operations have not been impacted by the strike.

'The deadlock continues today. But our flight operations are normal,' the official said.

According to him, another round of talk between the top management and the workers is impossible as the chairman and managing director, Arvind Jadhav, has left for Mumbai after Tuesday night's talks collapsed.

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.

The carrier had earlier come under severe criticism for offering huge incentives to its 31,000 employees, even while it was suffering losses.