Air India is considering cancelling an order of three Boeing 777-300ERs, and replacing them with 10 737-800s instead.
A committee of airline officials is studying the proposal and are in negotiations with Boeing, says an Air India spokesman.
The three aircraft are part of five 777s to be delivered to the airline and were supposed to arrive next year, he adds.
"Two of the five are already on the production line, and there's been a proposal to change the last three aircraft to single-aisle planes," says the spokesman.
Air India, which posted a net loss of 56 billion rupees ($1.2 billion) for the fiscal year ending 31 March 2009, is restructuring its operations to reduce debt and cut costs. It has said it was looking to lease out its 777s to reduce costs.