The civil aviation ministry on Thursday indicated that it was going ahead with a revival plan for state-run Air India, whose divestment earlier this year did not take off.

As part of this plan, civil aviation minister Jayant Sinha said: “Air India has planned to monetise its unutilised immovable real estate assets over the next few years. Till date, Air India has realised an amount of Rs 410 crore through the sale of non-core assets in various cities in India and abroad.”

Sinha told the Lok Sabha that the government has prepared a revival plan for Air India which “focuses on building a competitive and profitable airline group”.

Outlining the revival plan, Sinha said a comprehensive financial package, including transferring non-core debt and assets to a special purpose vehicle would be introduced as part of the plan.

The airline would also try and achieve “higher levels of operational efficiency by strengthening management and implementing best practice business processes, organisational and governance reforms and differentiated business strategies for each of Air India’s core businesses”.

He indicated that divestment in Air India’s arms would also form a part of the package.

In a separate written reply, Sinha said the government remains committed to the divestment of Air India.

“The contours of the mode of disposal of the subsidiaries — Air India Engineering Services Ltd (AIESL), Air India Air Transport Services Ltd (AIATSL) and Airline Allied Services Ltd (AASL) — will be decided separately,” he said.

Last week, the government had sought the approval of Parliament for equity infusion worth Rs 2,345 crore into debt- laden Air India.