File photo: Air India.
Once a great airline and now decrepit, Air India would get split into four separate companies and the government is offering at least 51% in each of them as part of their disinvestment plan.
As per media reports, the plan was proposed by Prime Minister Narendra Modi.
The four sections in which the airline would get divided are airline business, regional arm, ground handling and engineering operations, said reports.
Media reports quoted Aviation Minister Jayant Sinha as saying that the core airline business comprising Air India and Air India Express, the low coast overseas arm will be offered as one company.
The process is expected to get complete by the end of the year 2018.
Last week, India had cleared a proposal to allow foreign investors which allows foreign investors to own up to 49% in the airline.
Recently, Tata group showed interest in bidding for Air India along with Singapore airline.
Tata group chairman N Chandrasekaran had said last year that his group was ready to bid for the state-run airlines.
Prime Minister Narendra Modi's administration had been exploring ways to privatise the loss-making national carrier, which was bailed out in 2012 with $5.8 billion of federal funding.
The airline is under the debt of more than Rs. 52,000 crore.
(With inputs from news agency)