Alliance Air, a regional airline based in India, is a subsidiary of the country's flag carrier, Air India. This article delves into the ownership details of Alliance Air, its history, and its relationship with Air India.
Alliance Air: A Brief History
Alliance Air was established in 1996 as a joint venture between Indian Airlines (now Air India) and Malaysian carrier, AirAsia. The airline started operations with a fleet of two ATR 42-300 aircraft, connecting smaller cities and towns that were underserved by major airlines. However, in 2007, AirAsia pulled out of the venture, leading to a change in the airline's fortunes.
Change in Ownership: Air India Takes Over
Following AirAsia's exit, Indian Airlines, which later merged with Indian Overseas Airways to form Air India, took full control of Alliance Air. This marked a significant shift in the airline's ownership structure. Today, Alliance Air operates as a wholly-owned subsidiary of Air India.
Air India's Strategic Role in Alliance Air
As the parent company, Air India plays a pivotal role in Alliance Air's operations. It provides operational, financial, and strategic support to help Alliance Air grow and expand its network. Here are some key aspects of their relationship:
- Fleet Management: Air India assists Alliance Air in fleet management, helping it acquire and maintain aircraft.
- Network Expansion: Air India's extensive network and market knowledge help Alliance Air identify and tap into new routes and markets.
- Financial Support: As a subsidiary, Alliance Air benefits from Air India's financial resources, which aid in its growth and sustainability.
Alliance Air's Role in Air India's Regional Strategy
Alliance Air serves as a critical component of Air India's regional strategy. By focusing on tier-II and tier-III cities, Alliance Air helps Air India expand its reach and tap into new markets. This strategy aligns with the Indian government's regional connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), which aims to make air travel affordable and accessible to the masses.
Alliance Air's Fleet and Network
As of 2021, Alliance Air operates a fleet of ATR 72-500 and ATR 72-600 aircraft, serving a network of over 50 destinations across India. The airline's focus on regional connectivity has helped it carve a niche for itself in the Indian aviation market.
Future Prospects
The Indian aviation market is one of the fastest-growing in the world, and Alliance Air, with its regional focus and strong parentage, is well-positioned to capitalize on this growth. As Air India continues to support and invest in Alliance Air, the future looks promising for the regional carrier.
