Amidst the recent developments in the country’s aviation sector, the government has taken a significant decision to invest in an airline company.
The latest information reveals that the government will invest Rs 300 crore in Alliance Air, a regional airline facing financial challenges. A senior official from the Union Civil Aviation Ministry shared this news.
Alliance Air, previously a part of Air India, is now owned by AI Assets Holdings Limited (AIAHL), a special purpose company created by the Central Government.
Currently, Alliance Air operates as a subsidiary within AIAHL, running over 100 flights daily. The airline operates approximately 130 flights daily, providing crucial regional connectivity.
The official confirmed that the Finance Ministry has approved the investment of Rs 300 crore in Alliance Air.
Flights under the Alliance Air brand are operated by the airline Allied Services, which has recently changed its name to Alliance Air Aviation Limited.
The investment comes at a time when Alliance Air has been facing challenges, including non-payment of salaries and allowances to its pilots due to the impact of the COVID-19 pandemic.
Over the past months, pilots have staged multiple demonstrations to address salary-related issues and other concerns.
With the government’s investment of Rs 300 crore, Alliance Air is expected to receive a financial boost, helping the regional airline navigate its current financial crisis and ensure its operations continue smoothly.
