State-owned Alliance Air (India) (9I, Delhi International) is seeking additional funding of INR7 billion rupees (USD83.5 million), sources have told India's Financial Express. This follows the government pumping INR6 billion (USD71.6 million) into the carrier last year, the vast bulk of which the carrier reportedly used to pay interest on its debts.

The news outlet says Alliance Air is grappling with supply chain issues and a INR40 billion (USD477.2 million) debt pile. Earlier this year, referring to Indian government budget papers, ch-aviation reported that it was in line for government funding of just INR11.6 billion (USD138.4 million) for the twelve months to March 31, 2025.

The government has also expressed its intention to sell Air India Assets Holding Ltd. (AIAHL) in 2025. AIAHL is a special-purpose vehicle holding Air India's non-core assets and debt, including Alliance Air.

According to the ch-aviation PRO airlines module, Alliance Air flies to 59 destinations, primarily within India but also to Sri Lanka's Jaffna Airport. Its 21-strong fleet includes two ATR42-600s, eighteen ATR72-600s, and a single Do228-200. Currently, six of the ATR72s are on the ground because of engine issues.

ch-aviation has contacted Alliance Air for comment.