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Monday, May 15, 2023

Alliance Air in trouble after Go First, government's 300 crore will save lives

According to an official of the Ministry of Civil Aviation, the Finance Ministry is planning to invest 300 crore equity in Alliance Air. Alliance Air has seen a net loss of Rs 447.76 crore in the financial year 2021-22 and is facing financial crisis.

After Go First, another airline is in trouble. The name of this airlines is Alliance Air. AI Assets Holding Limited is the owner of Alliance Air, once with Air India. Now the government itself has come forward to revive this career. According to the information, the Finance Ministry will make an equity investment of Rs 300 crore in Alliance Air. In the last few months, there has been a salary issue of the staff due to paucity of funds and there was also a strike by the staff due to non-payment of allowances apart from the pre-Covid salary.

Operates 130 flights daily

Alliance Air is currently under AI Assets Holding Limited (AIAHL), which is a Special Purpose Vehicle of the Government of India. Earlier, the air carrier was part of Air India. Alliance Air is operating 130 flights daily. According to an official of the Ministry of Civil Aviation, the Finance Ministry is planning to invest 300 crore equity in Alliance Air. Alliance Air has seen a net loss of Rs 447.76 crore in the financial year 2021-22 and is facing financial crisis.

How much capital does the company have

The flights operating under the name Alliance Air are managed by the airline Allied Services, which recently changed its name to Alliance Air Aviation Limited. As per the latest data available from the Ministry of Corporate Affairs, the company has an authorized capital of Rs 2,000 crore and a paid-up capital of Rs 402.25 crore.

These four companies are with the government

At present, AIAHL has four companies Air India Air Transport Services Limited, Air India Engineering Services Limited, Airline Allied Services Limited and Hotel Corporation of India Limited, which were earlier associated with Air India. The government plans to sell all the four companies. Expression of Interest (EoI) for Air India Air Transport Services and Air India Engineering Services is expected to be announced soon. Loss-making Air India along with Air India Express was acquired by Tata Group in January 2022.

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