Air India's performance is to be studied by the government before allowing the next installment of the rescue package is given to the cash-strapped state-airline.

The period of performance will be for one-and-a-half years. The total amount for the second installment is about 2,000 crore rupees.

Said a government official that unlike the past years, this time the airlines has been able to show low costs, lower losses, high revenue, higher occupancy and above all an effective new management system.

The review is to be studied by the Empowered Group of Ministers (EGoM) before giving their nod for the installment. The review is to be done by September 14. Post this the cabinet committee on economic affairs is also going to do the necessary studies.

One must remember that it was in November that Finance Minister, Pranab Mukherjee laid down the condition of doing a performance appraisal before giving any more money. The first installment was for 800 crore rupees.

Air India has seen its losses come down from 5,671 crore rupees in 2008-09 to 3,645 crore rupees in 2009-10.