Alliance Air to receive an equity infusion of ₹ 300 Crore from government: Report
A media source revealed that the government will invest an equity infusion of ₹ 300 crore in regional carrier Alliance Air which is facing a financial slowdown, said a senior official.
Earlier a part of Air India, Alliance Air is owned by AI Assets Holding Ltd (AIAHL), a special-purpose vehicle formed by the central government.
Alliance Air operates around 130 flights on a daily basis. In recent times, the airline company is facing instances like strikes by pilots to protest against non-restoration of salaries to the pre-Covid level and non-payment of allowance, among other issues.
The Finance Ministry has approved an equity infusion of ₹ 300 crore into Alliance Air, the senior civil aviation ministry official told the news source.
The company's authorised capital is ₹ 2,000 crore and the paid-up capital is ₹ 402.25 crore, as per the latest data available with the corporate affairs ministry.
In fiscal 2021-22, Alliance Air witnessed its net loss widen to ₹ 447.76 crore and has been grappling with financial woes. Further, in the financial year that ended in March 2022 the carrier’s cash loss widened to ₹ 224.18 crore.
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