New Delhi, Aug 4 (IANS): National carrier Air India Wednesday said it has cancelled a $1.6 million brand revamping deal with an Australian firm for the upcoming Commonwealth Games.

"The project with Australian branding firm Cato Purnell Partners has been cancelled. The decision was taken yesterday (Tuesday) evening," an Air India spokesperson told IANS.

The decision to cancel the "brand revitalisation" deal came soon after Civil Aviation Minister Praful Patel was asked about it in the Rajya Sabha Tuesday.

"Since National Aviation Company of India Limited (NACIL) has been designated as the official carrier for the Commonwealth Games, Cato Purnell Partners have been appointed by NACIL to revitalise its brand identity," said Patel in reply to a question.

He also informed the house that the fees payable to Cato Purnell Partners would be around $1,612,750 plus taxes.

Apart from branding activity, the Australian firm was to assist Air India in the design and construction of its domestic and international lounges at the new Terminal-3 of the Indira Gandhi International Airport.