India's Ministry of Finance has approved a INR3 billion Indian rupee (USD36.5 million) equity injection for Alliance Air (India) (9I, Delhi International), its loss making regional airline likely to go up for sale in 2024, according to a Press Trust of India report.
The report cites an unnamed official saying that the equity boost would go ahead. Alliance Air operates an extensive network of scheduled flights around India. However, like other India-based carriers, it is under financial pressure. In the 12 months to March 31, 2022, Alliance Air lost INR4.478 billion (USD54.4 million). According to the ch-aviation fleets module, the airline operates a fleet of 21 turboprops, including two ATR42-600s, eighteen ATR72-600s, and one Do228-200.
The Indian government has previously flagged selling off Alliance Air. In March, ch-aviation reported that it was eyeing doing so next year, arguing that right now, with the consolidation and restructuring going on across the Indian airline industry, there was a "lack of appetite" for airline acquisitions. That appetite may now be further dampened by the cessation of services by Go First (Mumbai International) and the battle SpiceJet (SG, Delhi International) faces to stay in the air.
According to the Press Trust report, Alliance Air is operating around 130 flights per day but is dealing with industrial unrest, including strikes by pilots who want their salaries restored to pre-pandemic levels.
