Government-owned Air India has projected 11% jump in its revenue to R11,388 crore for the current financial year even as it struggles to raise funds for working capital requirements. The airline is riding on its overseas operations and competitive fares in the domestic market for the increase in the overall revenue.

Air India has registered 8% growth in passenger revenue from its international operations during April-September this year over the same period of 2010-11.

The airline saw its passenger numbers going up in spite of a cut in capacity by 2.4%. During the first six months, the airline also witnessed higher flight occupancy of 66.8% across its network.

?We are trying to generate maximum revenue internally for our daily cash requirements. The option of bank rollover is almost closed,? a senior Air India official said.

The airline would, however, post a record loss of R7,375 crore (before tax) during 2011-12 mainly due to additional fuel cost burden of R1,300 crore and depreciation on account of fleet acquisition.

The airline has approached the government for fund infusion to sustain its operation as it is burdened with a total debt of R42,000 crore of which R22,000 crore is short-term and attracts high interest rate.

The annual cash outgo to the tune of R2,400 crore annually is on account of interest alone. The carrier is staring at government for an equity infusion of R6,650 crore in the current financial year.

The airline is currently in the process of implementing a turnaround and financial restructuring plans prepared by Deloitte and SBI Caps.

A group of ministers (GoM) headed by finance minister Pranab Mukherjee has referred the revival plans to the RBI for its vetting. ?As directed by the GoM, we have met the Reserve Bank governor and also deputy governor. We expect their response on our restructuring plans any time soon,? the Air India official said.

Air India also aims to cut its losses in next six months (October-March) period over April-September by 18% by adopting measures like swapping high-cost debt with the low-cost and rationalisation of routes.

During the ongoing winter schedule the airline is looking at reducing its losses by R220 crore through operational efficiency measures.