"The modalities of the package are being discussed with Thomas Cook, Cox & Kings and TCI. The package will be announced shortly. Though the airline has been offering packages like Visit India, this is the first time that a comprehensive tour package is being drawn up," said a top IA official.

The airline has also roped in a clutch of local operators which have fairly good overseas business. It is now trying to work out something unique after taking into account hotel, surface transport and air fares, the official said.

The tour package is a part of a series of product upgradation exercises IA has announced recently. Aspart of the plan, the airline is giving finishing touches to a package for corporates expected to be operational from the first week of July. It will be initially launched in Delhi and Mumbai and will target the top 200 corporate houses.

The package is built around rewarding companies which have been making a strong preference for IA. Companies which are doing business worth Rs 1 crore annually with the airline have been identified for inclusion in the list. The incentives and concessions vary from one company to another and will be proportional to the amount of business that they have with the airline.

An officer with a middle-level rank will act as a conduit between the airline and company. IA has also firmed up plans to beef up its international operations. It has finalised an agreement with Emirates to generate more business in the Gulf region.

Though the domestic market is slightly down, it is being compensated by the heavy rush of travellers from the Gulf. IA's Inter-Gulf flights are doing well astraffic from the Gulf has increased due to the summer vacation, airline sources said.