Air India will have to shed its full-carrier status and transform into a low-cost airline on most of the domestic routes to survive. Manmohan Singh on Wednesday met up with aviation ministry biggies to discuss the crunch faced by the national carrier. It is said that he has promised to lend support to Air India only if AI sheds flab and becomes competitive. Else, it would be the end for the airline.

After the meeting with the PM, the government has made a four-member committee of secretaries. It would be headed by cabinet secretary. Aviation Minister, Praful Patel has said that the airline’s plans to restructure and the request for equity infusion should be submitted in a month. The government will not be able to keep supporting unconditionally unless some measures are taken to rejuvenate the airline.

This restructuring means AI becoming a low-cost carrier on almost every domestic route, except a few metros where full-carrier status is feasible. In the present economic scenario only low-cost airlines have seen good load. The efficiency of AI has touched a low and the aviation ministry has not been able to revive despite ordering new planes and merging Indian Airlines and AI. The committee of secretaries would do a monthly review on the performance of AI and see that the airline is meeting the promises.

The airline has registered losses of about Rs 5000 crore in the last fiscal. Patel added that there would be a restructuring of management in a month. Distinguished people would come aboard and the airline would phase out old aircraft.