Alliance Air (India) (9I, Delhi International) could receive financial support of INR11.6 billion Indian rupees (USD139.5 million) for the financial year running from April 2024 through March 2025, according to the country’s interim 2024 budget seen by ch-aviation. The government earmarked the funds for Air India Asset Holding Limited (AIAHL), the state-owned holding controlling Alliance Air and other assets formerly owned by Air India (AI, Delhi International) before privatisation.

The regional carrier also received an additional INR6 billion (USD72.3 million) in the revised budget for the current financial year in the form of a direct equity infusion, bypassing AIAHL. This came on top of a planned INR7.1 billion (USD85.5 million) subsidy to the entity.

The Economic Times reported that the carrier’s budget will be used to partially reduce its debt as it moves through its privatisation process and is not allowed to secure external borrowings. In December 2023, it was reported that Alliance Air had an IND833 million (USD11 million) debt owed to the Airports Authority of India alone.

Since becoming independent from Air India in April 2022, the state-owned company has focused on providing more connectivity across the country, serving tier II and tier III destinations while creating brand awareness. However, due to heavy losses, it has depended on equity injections from the government. For instance, for the full year ending on March 31, 2022, it recorded INR4.47 billion (USD54.4 million at the time) in losses.

The carrier wasn’t immediately available for comment.

The ch-aviation fleets data module shows that the Alliance Air fleet comprises two ATR42-600s, eighteen ATR72-600s, and one Do228-200, with a second Dornier STOL turboprop due for delivery. It leases its entire fleet from four firms: Abelo Capital Aviation, Avation, DAE Capital, and TrueNoord.

Additionally, India’s Ude Desh Ka Aam Nagrik (UDAN) connectivity scheme, in which Alliance Air is a key player with about 60 daily flights, was also allocated INR5 billion (USD67.1 million) for the April 2024-March 2025 period.