The offer would be open to all the 18,000-odd employees of the airline which is on the brink of a financial collapse. Airline official say that it is looking at about 800 people leaving the organisation `in the best case scenario'. ``The VRS is going to be an ongoing process. In the next fiscal, we are again targeting another 800 (employees) to leave,'' officials said.

Based on a pre-VRS survey undertaken by the airline, Air India has decided to offer free passages to its outgoing employees. The airline will also provide medical cover to its employees which was another demand of the employees. ``With a lump sum amount, the medical and free passages, this is one of the most attractive schemes offeredby any organisation in the recent time in India,'' officials say.

The plan has been forwarded to the airline's militant unions whose consent is necessary before the management launches this scheme. Though the airline wanted to get rid of more people but due to financial constraints, it managed only Rs 20 crore as the first tranche of its VRS fund.

Air India's efforts to reduce its surplus employees stems from the fact that the airline is having one of the highest employees to aircraft ratio in the industry. With only 26 aircraft and 18,000 employees, Air India's employee to aircraft ratio is as high as 690 as compared to the world average of 250 employees..

Airline officials say the management will reserve the right to reject any application based on the necessity of an employee. ``We would not like our pilots and engineers to go as they are necessary for the airline's survival,'' officials said.

Meanwhile, for the first quarter of the current fiscal, the airline managed to increase its revenue perseat by 10.4 per cent as compared to the same period of fiscal 1997.