Giving an estimate of the AI's loss, Patel said that the airlines incurred a loss of Rs 2,226.16 crore during 2007 to 2008.
He said that AI operator, National Aviation Co of India Ltd (NACIL) has undertaken several cost-centric proposals to enhance the company's performance.
Patel said that while the government has assured of financial assistance to the cash-strapped national carrier, the airlines has been asked to cut its cost by at least Rs 2,000 crore by the current fiscal end.
The proposal for restructuring AI by Committee of Secretaries will be pondered upon by the government in the days to come.
AI is expected to receive it first instalment of Rs 400 crore by Jan 2010.
The airlines has undergone an unending series of losses since 2004 to 2005.