Executives at Star Alliance met with Air India officials in London on Monday and agreed for the airline, which has been in talks to join since last year, to become its 27th member, Air India spokesman Praveen Bhatnagar told Reuters.

With this action, the state-run airline has shipped out 129 staff since last year.

Air India’s industrial relations department communicated this decision last week through a letter addressed to the office bearers of Aviation Industry Employees Guild (AIEG), Air India Employees Union and Air India Service Engineers Association. The unions have challenged the move and served a legal notice on the airline, asking it to take back the decision.

“We have also raised our concerns about the launch of two new airlines that will soon start flying in the country,” the official said.

The plan, approved in 2012, involves helping the state-owned airline cut its high-cost debt and turn around its operations.

The additional funds in the coming Budget are being sought on three grounds — shortfall of Rs 500 crore in the government's equity infusion last fiscal, interest cost incurred by the airline to raise this amount as loan from banks and finally the fluctuation in $-re exchange rate last year from the assumed value of Rs 40-45 when the FRP was approved.

The airline is additionally seeking immediate cash infusion of Rs 3,000 crore to repay loans it had taken last year to clear dues to vendors, in the event of a shortfall in the equity infusion earlier promised by the government.