Centre Plans To Invest Rs 300 Cr In Alliance Air
The Union government plans to invest Rs 300 crore in equity infusion in the struggling regional airline Alliance Air.
According to reports, the finance ministry has approved the equity infusion of Rs 300 crore. It may be recalled that the central government-created special-purpose vehicle AI Assets Holding Ltd (AIAHL) now owns Alliance Air, which was formerly a component of Air India.
Alliance Air conducts about 130 flights per day and is headed for disinvestment. Pilots have taken to the streets in recent months to demonstrate against, among other things, the non-payment of allowance and the failure to restore salaries to their pre-Covid levels.
Flights under the ‘Alliance Air’ brand are operated by Airline Allied Services, which changed its name to Alliance Air Aviation.
According to the most recent information with the ministry of corporate affairs, the company has a paid-up capital of Rs. 402.25 crore and an authorised capital of Rs. 2,000 crore.
Alliance Air has been experiencing financial difficulties, with its net loss increasing to Rs 447.76 crore in the fiscal year 2021–22. The carrier’s cash loss increased for the fiscal year that ended in March 2022 to Rs 224.18 crore.