With an aim to restructure the national carrier, about 72-75 per cent of the total flights of Air India would gradually be brought under the low-cost entity, he added.
Air India Express currently has only international operations, mostly on gulf routes from India. The national carrier is also negotiating with banks to replace its high-cost debts with low-cost ones.
"We are currently negotiating with banks to replace our high-cost debts with low-cost debts ... Our high cost debt is around Rs. 10,000-11,000 crore," Jadhav said.
The airline has also set up a cost management and audit team to look at the overall financial restructuring of the airline, which would deal with servicing of debt, risk management and other related issues.