The Indian Government is planning to inject $36.5 million into Alliance Air as the airline continues to face financial crunch and pilot strikes.
The airline stands to benefit greatly from the timely equity infusion from India's Ministry of Finance, easing its worries of ongoing pilot strikes impacting the airline’s operations. The Alliance Air pilots are unhappy about not receiving payments on time and the salaries not yet being restored to pre-COVID levels. Although the airline management and pilot unions have tried negotiating terms, no solution is in sight.
Alliance Air posted net losses of $54.4 million for the FY2021-22 as per data from Ministry of Corporate Affairs, India. The airline's authorized capital is $243 million while its paid-up capital totals $48.9 million.
Alliance Air was a subsidiary of Air India before privatization but now is owned by the government-backed AI Assets Holding Ltd (AIAHL) and is in line to be sold off soon. The government began the process of selling off Alliance Air to private buyers in September 2022 and is still on lookout for a potential buyer for the airline.