Last week, the government had cleared a proposal to allow foreign investors to own up to 49 per cent in the carrier.

India will split state-run carrier Air India into four separate companies and offer at least 51 percent in each of them as part of a divestment plan proposed by the government, Bloomberg reported on Monday.

The debt-laden airline would be divided into core airline business, regional arm, ground handling and engineering operations, the report added.

The core airline business comprising Air India and Air India Express, the low-cost overseas arm, will be offered as one company, and the process will be completed by the end of 2018, Bloomberg reported, quoting Junior Aviation Minister Jayant Sinha.

Last week, India had cleared a proposal to allow foreign investors to own up to 49 percent in the carrier.

Air India could not be immediately contacted for comments.