Air India is looking to defer aircraft deliveries, cut flights and postpone expansion plans after majority owner Tata Group instructed the carrier to focus on reducing its record losses, a Bloomberg News report said on Friday.

The change in strategy is an abrupt pivot from an ambitious growth plan. It reflects the loss of confidence in an airline that suffered a fatal crash a year ago and has since incurred an annual loss equivalent to about $3 billion.

The downsizing will involve a variety of efforts to reduce costs. Air India is in discussions with Airbus SE and Boeing Co. to slow down deliveries of as many as 500 planes previously ordered, the report said quoting sources.

Doing so would enable Air India to push back the large payments due to plane makers upon delivery.

The carrier is also reevaluating plans to fly to new domestic and international destinations, pruning some routes and postponing launches at some airports, such as the new Noida International Airport near New Delhi, the sources told Bloomberg.

Air India’s cowed ambitions follow a series of challenges that have pushed it deep into the red. The deadly crash last June, Pakistan closing its airspace to Indian carriers, and the war in Iran have disrupted flights, forced costly rerouting and driven up fuel expenses.

The weak rupee has also added to its financial woes since much of the airline’s costs are in dollars.

The Tata group, which took over the national carrier in 2022, now wants Air India to temper its growth strategy to focus on stabilising current operations and implement cost-cutting measures, people familiar with the matter said.

Air India earlier this year announced flight cuts due to the Iran war and airspace shutdowns.