Government To Infuse Rs 300 Crore Equity In Alliance Air

Alliance Air, a regional carrier facing financial challenges, is set to receive an equity infusion of Rs 300 crore from the government as per senior official. The airline was previously a part of Air India but is now owned by AI Assets Holding Ltd (AIAHL), which is a special-purpose vehicle established by the central government.

Alliance Air, which is headed for disinvestment, runs about 130 flights every day. In recent months, there have been a few cases of pilot strikes to protest against, among other things, the non-restoration of salaries to the pre-Covid level and the non-payment of allowance.

A senior civil aviation ministry official told PTI that the finance ministry had approved a $300 crore equity investment in Alliance Air.

It was unable to instantly determine specifics.

Airline Allied Services, which rebranded as Alliance Air Aviation Ltd., is the company that runs flights under the "Alliance Air" brand.

According to the most recent information on file with the ministry of corporate affairs, the firm has a paid-up capital of Rs. 402.25 crore and an authorised capital of Rs. 2,000 crore.

Alliance Air has been having financial difficulties, as seen by the increase in its net loss to Rs 447.76 crore in the fiscal year 2021-22. In the fiscal year that ended in March 2022, the carrier's cash loss increased to Rs. 224.18 crore.

Four businesses that were formerly a part of Air India are now under AIAHL. These include Air Transport Services Ltd, Air India, Airline Allied Services Ltd, Air India Engineering Services Ltd, and Hotel Corporation of India Ltd.
The administration will eventually propose divesting all four enterprises.

Air India Engineering Services and Air India Air Transport Services' Expressions of Interest (EoI) are scheduled to be floated soon.

Tata Group acquired loss-making Air India and Air India Express in January 2022.