Oman Air (WY, Muscat) is to be broken up into three separate companies — one for freight, one for ground services and one for passengers - Finance Minister Darwish al-Balushi told parliament last week.

According to the AFP, in his address al-Balushi said the move is part of the Omani government's privatization plans involving 60 state-backed firms.

“A decision on privatisation will be taken subsequently in light of the results at each of the companies,” said Balushi, who is also chairman of the airline. "Oman Air is losing money, so it's going through a restructuring phase. We will have three companies instead of one," he said.

Loss-making Oman Air has struggled to make an impact in a region dominated by the likes of Qatar Airways (QR, Doha Hamad International), Etihad Airways (EY, Abu Dhabi International) and Emirates (EK, Dubai International). In early 2013, it outlined a proposal to establish a new Low Cost Carrier and dedicated freight division as a means of diversifying its income base.