The business class seats will be slashed down in 34 Airbus aircrafts, including A 319s and A 320s, said sources.
Air India has also decided to give its properties located in Mumbai and other cities on rent in a bid to increase its earnings.
The meeting comes following the government's plan to extend a relief package of at least Rs 10,000 crore, including Rs 6,600 crore worth of equity infusion.
According to official sources, the package will be considered shortly, so as to include it in the general budget.
The ailing airlines is likely to get a Rs 10,000 crore package including additional equity of Rs 6,600 crore and other support in 2013, said sources.