With 150 out of 200 unionised pilots unconditionally signing the undertaking, Air-India is prepared to operate eight additional flights to the Gulf and a fifth service to New Jersey from July 5 even as the airline expects a net profit of Rs 100 crore (Rs 1 billion) in 2002-03.

"In the next two days, all flights to Gulf from South India and Mumbai will be brought back to normal and those from Delhi shortly thereafter," Civil Aviation Secretary K Roy Paul told reporters in Mumbai on Monday.

On chargesheets served to A-I pilots, he said, "Enquiry proceedings will begin later this week against 48 pilots who have been chargesheeted."

Asked if this action taken against A-I pilots was a warning to other unions in A-I and Indian Airlines, Paul, who was transiting on his way to Delhi, said, "It is a notice to everybody that government means business and will not like to have disruptions in services in any field or segment."

Following the agitation, Civil Aviation Minister Shahnawaz Hussain had met Prime Minister Atal Bihari Vajpayee and Deputy Prime Minister L K Advani, who reportedly gave a go-ahead to deal firmly with the situation.

Paul, who is also the chairman of Air-India, congratulated the management for its professional approach in tackling the crisis after the now derecognised Indian Pilots' Guild issued directives for operating in SARS (Severe Acute Respiratory Syndrome) affected regions.

The pilots have now agreed to work and ensure increased productivity. "We do not like to find faults with a vast majority, though a few leaders misguided the line pilots", he added.

Referring to the week-long agitation, Jitender Bhargava, director (public relations) A-I said two different sets of misconducts are being looked into.

One of those who refused to operate flights and second, against the seven member IPG executive committee for instigating the pilots, he said.

Asked if the airline had excess pilots, both Paul and A-I managing director J N Gogoi said the airline needed to expand operations and emphasis now was to rebuild the airline.

"Plans are ready and they will be unfolded shortly," Paul added.

On fleet acquisition programme, Paul said, "The A-I board will take a decision shortly. I cannot set a timeframe but it will be much quicker. The process has been slightly delayed because of this agitation." He said a roadmap for both, A-I and Indian Airlines is being prepared and synergy of operations would be the main criteria.

Compared to A-I's net profit of Rs 100 crore (Rs 1 billion), IA is likely to cut down its losses compared to the previous year, he said.

"The operations of IA per se are efficient. Social obligations have been a setback to the airline, which is functioning with a lot of limitations," he added.