Govt to infuse ₹300 crore equity in Alliance Air

The government is set to make an equity infusion of ₹300 crore in regional carrier Alliance Air, which is facing financial headwinds, a senior civil aviation ministry official told PTI.

Specific details could not be immediately ascertained.

Alliance Air, earlier part of Air India, is now owned by AI Assets Holding Ltd (AIAHL), a special-purpose vehicle formed by the central government.

The disinvestment-bound Alliance Air operates around 130 flights daily. In recent months, there have been instances of strikes by pilots to protest against non-restoration of salaries to the pre-Covid level and non-payment of allowance, among other issues.

Also read: Alliance Air board to discuss pilots salary issues this month

Flights under Alliance Air brand are operated by Airline Allied Services, which changed its name to Alliance Air Aviation Ltd.

The company’s authorised capital is ₹2,000 crore and the paid-up capital is ₹402.25 crore, as per the latest data available with the corporate affairs ministry.

Alliance Air’s net loss was ₹447.76 crore in fiscal 2021-22

Alliance Air, which saw its net loss widen to ₹447.76 crore in fiscal 2021-22, has been grappling with financial woes. The carrier’s cash loss widened to ₹224.18 crore in the financial year ended March 2022.

Four companies that were earlier part of Air India are now under AIAHL. These are Air India Air Transport Services Ltd, Air India Engineering Services Ltd, Airline Allied Services Ltd, and Hotel Corporation of India Ltd.

Also read: Alliance Air denies boarding to physically challenged artist over battery-run wheelchair

All the four companies are proposed to be divested by the government in due course. The Expression of Interest (EoI) for Air India Air Transport Services and Air India Engineering Services are likely to be floated soon.

Loss-making Air India, along with Air India Express, was taken over by the Tata Group in January 2022.

(With agency inputs)