Rajan is correct in what he says, but there are a few things worth noting beyond what he said.
First, if you have not already done this, you might be able to extend the time you can use the existing file if it contains a lot of unused space. The FUP RELOAD command will reorganize the records in the file to remove space that used to be taken by records that have been deleted from the file, or space at the end of the individual data blocks that was left unused because the SLACK setting for the file said to reserve the space. Whether there is much unused space in the file that can be recovered depends on how the file has been created and how it has been operated on by the applications that update it. The FUP INFO command with the STAT option can show you how much slack space the file contains. Note: RELOAD can only be used on audited files.
Rajan said to create a new file that is format 2 and has the same record structure and copy the data into it. That works, but using the FUP LOAD command with the SORTED option is much faster than COPY. COPY will sort the input records, which for a large input file will take a very long time. When you tell LOAD the data is already sorted in the correct order, which it will be if you are creating the new file with the same key, the input data is already in the correct order, and LOAD will not sort the input data. The file into which LOAD writes the data must be not audited while you do the LOAD, but you can turn on auditing after the LOAD is complete, if the application needs its file to be audited.
If you can free up enough room on the volume that contains the current file, you can create the new file on the same volume, giving it a different name. Then, when the new file is loaded and ready to be used, you can rename the original file to some other name, rename the new file to the original name, and you will not have to change any programs or command files that refer to the file name. If you have to create the new file on a different volume, you will either have to change the references to the file to use the name on the new volume, or you will have to purge the original file and FUP DUP the file from the new volume to the original volume after the LOAD is done.
If the alternate key file is not nearing its size limit, you can make the new data file refer to the original alternate key file AFTER the LOAD is done (create the data file without alternate keys and only add the alternate key descriptions after the LOAD is done). If, for some reason, you want to create a new alternate key file, it is best to create the data file without the alternate keys, then add them after the LOAD is done and use the FUP LOADALTFILE command to load the alternate key file after the LOAD of the data file is done.
No application access to the file being converted should be allowed while the above steps are being done (except FUP RELOAD can be done while the file is accessed normally).