Alliance Air, the only government owned airline has got a boost in the budget with the government allocating an investment of Rs 1,158 crore into the company for FY 25.
The government had allocated Rs 1,174 crore in last budget but subsequently infused another round of Rs 600 crore
Sources said that fund will be used to provide financial relief on the working capital front along with alleviating some debt of the airline.
Currently, the airline operates 57 domestic and one international destination with its fleet comprising 18 ATR72-600 aircraft, two ATR 42-600 aircraft, and one Dornier Do-228. The airline’s second ‘Made in India Dornier aircraft is expected to be inducted shortly.
The airline is a major operator of flights under the UDAN (regional air connectivity) scheme, operating around 60 flights daily.
The airline’s first flight will deploy its fleet of Bombardier CRJ200ER aircraft for services on this new route. Zooom’s Chief Executive Officer Atul Gambhir stated that the airline will also persist in its support role, promoting the UDAN scheme, by launching additional services focused on the regional connectivity routes.
A senior Alliance Air executive said that increase frequency to Agatti, Lakshadweep, and airports in Arunachal Pradesh.Additionally, a feasibility study will be conducted to assess operating flights from other Indian cities to Agatti.Funding by the government is more crucial as privatisation process does not the airline to secure further borrowings. Thus, it was a critical move on part of the Centre to approve the capital infusion plan. This will aid the airline in facing the current financial turbulence,” the official said.
