If the proposal is finally implemented the airline will lease out the employees canteen located on the second floor of the building to a restaurant.

The management while confirming that such a proposal was indeed under consideration refused to divulge who the likely lessors of the premises were. The Air India management is also planning to have an arrangement whereby the restaurant will provide food at subsidised rates for the airlines' employees located at Air India building.

Air India has elaborate proposals to utilise its real estate reserves for maximum returns. It is estimated the total asset values of the airline inclusive of its engineering division, buildings and offices would be be around Rs 4,000 crore.

The official spokesperson of the Airline says: "It is still too premature to discuss the future leasing plans of the airline. Butwe are thinking of utilising the space available for some regular returns by leasing out the second floor to any interested restaurant chain."

Air India has been leasing out space for commercial purposes right from the early eighties. Out of the 23 floors of the Air India building, the airline offices occupy only 10 floors of the building.

There are talks that the airline is planning to lease out over seven floors of the Air India building for earning a regular income from its leasing agreements. But the Air India management said these are only unfounded rumours and the management has no such plans as of now.

The increased leasing plans have been firmed up to stem the rising costs of the airline. According to a company source in the last 43 years of its existence Air India had profits for 35 years. This included a streak of continuous profits for an uninterrupted seven years till 1995. In the last 4 years ending 1995 the cumulative profits amounted to Rs 722 crore. "However, in the last two years ithas incurred losses to the tune of Rs 630 crore.According to the sources, the government has invested only Rs 153.84 crore in Air India. But over a period of time AI has paid back interest on debt and dividend on equity to the extend of more than Rs 200 crore. Today the asset base of Air India is over Rs 4,000 crore growth funds wholly through internally generated sources.