Air India had proposed to convert a part of its total dues towards the AAI into equity besides offering the airport operator a position on its board, the government said on Tuesday.
The proposal was "considered" but not "accepted" by Airports Authority of India, Minister of State for Civil Aviation, Jayant Sinha said in Rajya Sabha.
"Air India has proposed to convert Rs 1,000 crore of outstanding dues payable to Airports Authority of India into equity, thereby offering AAI a stake in Air India as well as a position on its board," Sinha said.
The proposal of the national carrier was considered but not accepted by the AAI, he said.
"As per the audited annual accounts of AAI, the total outstanding dues of Air India is Rs 1883.73 crore as on March 31, 2016," the Minister said in reply to another question.
Air India, which is staying afloat on taxpayers' money, owes around Rs 2,300 crore to AAI, a senior official had said last month.
These dues are towards landing and parking charges as well as route navigation charges.
On earlier occasions, too, the airports operator had rejected similar proposals from the government-owned airline.
Air India has been making various efforts to revive its fortunes amid stiff competition. The carrier is surviving on a Rs 30,000 crore bailout package extended by the central government.