Indian Airlines is ready to operate two flights from Delhi to Kabul and three from Mumbai to Karachi subject to necessary clearances from the Indian government, IA chairperson and managing director Sunil Arora told newspersons in Mumbai on Wednesday.

Arora said though IA had the rights to operate in Kabul it was not economically viable to do so as it involved flying to the Afghanistan capital via Iran.

He said the airline was on a cost cutting exercise and likely to post lower losses in 2002-03 by nearly Rs 100 crore (Rs 1 billion) and the endeavour this fiscal would be to reduce it further.

Arora said IA was looking at converting one of its Airbus A300 into a freighter aircraft. "We are presently studying the comparative costs and if feasible intend to start cargo services", he said adding that presently IA carried about 300-350 tonnes of cargo daily.