India’s federal government on Aug. 12 replaced the head of Air India and said it will complete the financial restructuring plan of the ailing carrier in about three months.

The Star Alliance has proposed new conditions to induct Air India into the global airline consortium that the Indian government says it cannot accept. “The alliance has recently put forward additional conditions that cannot be accepted,” Civil Aviation Minister Vayalar Ravi said. He did not elaborate on the new conditions. Air India’s entry into the global pact among 27 airlines was indefinitely put on hold Aug. 1 as its executive board was unable to decide on the induction date.

Cash-strapped Air India is entitled to $145 million as partial compensation for delays in delivery of various aircraft ordered by the national flag carrier, says the country’s civil aviation minister, Vayalar Ravi. Ravi cited internal issues at Boeing for causing delays in the delivery of 737-800s and 777s by one to four months. Air India has been losing money since 2007, when it merged with Indian Airlines. High fuel costs and a $15 billion overhang of aircraft orders with Airbus and Boeing have added to the airline’s woes.