The Central government is set to make an equity infusion of Rs 300 crore in regional carrier Alliance Air, which is facing financial headwinds, said a senior official.
Alliance Air, earlier part of Air India, is now owned by AI Assets Holding Ltd (AIAHL), a specialpurpose vehicle formed by the central government. The disinvestment-bound Alliance Air operates around 130 flights daily. In recent months, there have been instances of strikes by pilots to protest against non-restoration of salaries to the pre-Covid level and non-payment of allowance, among other issues.
It is reported that the finance ministry has approved an equity infusion of Rs 300 crore into Alliance Air, the senior civil aviation ministry. Flights under 'Alliance Air' brand are operated by Airline Allied Services, which changed its name to Alliance Air Aviation Ltd.
The company's authorised capital is Rs 2,000 crore and the paidup capital is Rs 402.25 crore, as per the latest data available with the corporate affairs ministry. Alliance Air, which saw its net loss widen to Rs 447.76 crore in fiscal 2021-22, has been grappling with financial woes. The carrier's cash loss widened to Rs 224.18 crore in the financial year ended March 2022.
Four entities that were earlier part of Air India are now under AIAHL. These are Air India Engineering Services Ltd, Air India Air Transport Services Ltd, Airline Allied Services Ltd and Hotel Corporation of India Ltd. All the four conglomerates are proposed to be divested by the government in due course