Through pre-clearance, immigration, customs and other related inspections of international air passengers performed on arrival in the US can be completed before departure at a foreign airport.

The loan is backed with a sovereign guarantee and will be used for working capital, payment for aircraft spares and bridging the gap caused by delays in equity infusion by the government. The first tranche will be released next week, AI sources said. The loan is repayable over five years and carries annual interest of around 2.5 per cent.

Soman was appointed Air India's air safety chief in January this year.

“Once this money is raised, Air India will utilise it on improving fleet maintenance,” said officials. At any point of time, Air India has only 52-54 of its narrow body aircraft in working condition, in an overall fleet strength of 62 aircraft.

The move is part of a slew of initiatives taken to improve business conditions in the domestic aviation sector. The ministry also expects to soon unveil the much-awaited aviation policy that would help attract more investments into the sector.

To monetise these assets of Air India, the Civil Aviation Ministry would soon be moving a Cabinet note.

Efforts are being made to secure funds for Air India as the supplementary demands of ministries would be considered during the coming monsoon session of Parliament beginning July 21.

Free allowance for hand bagage are strictly limited to 8 kg for Air India and 7 kg for Air India Express, inclusive of duty-free items. However many a times passengers carry at least double the free allowance weight without being noticed. Baggage with weight over 7-8 kg will be charged a fee of 60 Dirhams (Rs 1,035) per excess kilo and taken from the passenger at the boarding gate.

State-run Air India, which floated a global tender for the policy to cover its 126 aircraft, expects to buy the policy at a reasonable discount, given the rise in the number of underwriters and its safety record, said two Air India executives.