National carrier Air India plans to hive off its cargo business into a separate

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unit by April 1, Anita Khurana, director-cargo, told reporters on Tuesday.

Cargo business currently constitutes 8 percent of Air India's overall revenues and Khurana expects that to increase after the spin-off.

Air India, which had stopped cargo flights to Europe and Japan last September, plans to resume these services in the first half of 2010, she added.