Alliance Air Calls for Increased Government Aid

Alliance Air's Plea for Government Support

According to sources who spoke with India's Financial Express, Alliance Air is looking for an extra capital of INR 7 billion rupees, or USD 83.5 million. This comes after the carrier received INR6 billion (USD 71.6 million) in funding from the government last year, the majority of which was allegedly utilized by the carrier to settle debt interest.

Alliance Air is reportedly struggling with supply chain problems and a debt load of INR 40 billion (USD 477.2 million), according to the news portal. According to Indian government budget documents from earlier this year, it was only expected to get INR 11.6 billion (USD 138.4 million) in government funds for the year ending March 31, 2025.

Additionally, the government has stated that it plans to divest Air India Assets Holding Ltd. (AIAHL) by 2025. Alliance Air is one of the non-core assets and debt held by Air India's special purpose company, AIAHL.

Alliance Air travels to 59 locations, mostly in India but also to Jaffna Airport in Sri Lanka. Among its twenty-one aircraft are two ATR42-600s, eighteen ATR72-600s, and one Do228-200. Six of the ATR72s are currently grounded due to engine problems.