Civil Aviation Minister Praful Patel met Air India Unions and the management in Mumbai on Wednesday to review its rationalisation and turnaround plan.

Addressing the media after the meeting, the minister said, "We have reviewed the functioning of Air India; we met unions and explained government plans to turn the airline around."

He assured that the government will infuse equity, but only if there is cost cutting in the airline.

"Air India employees have shown a lot of understanding. It seems management and unions can forge an understand of way forward," he said.

The minister said that one of the major issues is to cut costs by Rs 3,000 cr and revenue enhancement of 2,000 crore, adding that the national carrier is retiring the large fleet of leased aircrafts and the management is looking to the leasing of newer aircrafts.

Patel said that Air India can get Rs 100 crore with government business coming back to it.

Patel's announcement comes just two weeks after executive pilots of Air India had struck work and gone on mass sick leave protesting cuts in their productivity linked allowances.

Caught on the backfoot , the management had deferred the cut and the government had formed a sub committee of the Air India board to examine the issue. There are 14 unions of pilots, cabin crew, engineers, officers and other employees in the airline.

The cash strapped national carrier has accumulated losses of over Rs 7,200 crore since last fiscal.