New Delhi, May 6 (IANS) The government's interlocutors are working on an interim arrangement on emoluments for the pilots of the erstwhile Indian Airlines, who have been on strike for the last 10 days demanding pay-parity with their counterparts in Air India, an officical said Friday.

The two-man panel, under Civil Aviation Joint Secretary P.N. Sukul, has discussed the interim arrangement with both the Air India management and the striking pilots, a senior ministry official said.

"We hope both sides will accept the proposal till the time the panel on the pay parity gives its report in three months time," the official added.

The four-member panel headed by former Supreme Court judge Justice D.N. Dharmadhikari had begun functioning April 25.

The strike entered its 10th day Friday, forcing the airline to cancel as many as 1,470 flights, mainly on the domestic sector, since midnight April 26, resulting in a revenue losses of Rs.120 crore.

On Friday alone, 185 flights, mainly in the domestic sector, were cancelled while the carrier operated around 40 flights on the trunk routes between the metros, an Air India official said. International operations were almost normal.