The centre has restarted roadshows to divest the regional airline Alliance Air after an earlier attempt a few years ago did not conjure up much interest from the industry.
Speaking to businessline, industry sources revealed that the responsibility to conduct these roadshows has been given to a consultancy firm.
According to sources, these roadshows which are to be conducted by consultancy firm EY is meant to acquaint potential buyers with the airline’s financial and operational position.
“The divestment process of the regional airline is ongoing. After the roadshows, expressions of interest (EOIs) will be sought,” several sources told businessline.
“The firm incharge for conducting the roadshows has approached a few potential buyers.”
As per sources, industry players such as Bird Group, Fly91 airline, and a few others have been approached.
Notably, grounded aircraft due to supply chain constraints, along with high debt, has been ailing the divestment-bound airline.
As of now, the airline has been kept afloat by state bailouts, as its earnings are used to pay vendors.
In 2023, the central government infused ₹600 crore worth of additional equity in the airline.
Besides, sources told businessline, that the debt is estimated to be (approximately) ₹4,000 crore.
“The debt and a few other liabilities have been onboarded after the divestment of Air India,” sources said.
The airline’s debt is primarily owed to Al Assets Holding Ltd (AIAHL), fuel OMCs, and other vendors.
Alliance Air, sources said requires a fresh round of fund infusion to sustain operations and remain a “going concern” until its divestment process is completed.
At present, the airline has 21 aircraft, of which many are grounded due to engine issues.
The airline is operating to 52 stations in the country. It operates mainly to Tier2 & 3 cities.
Alliance Air is currently a major player in India’s flagship regional air connectivity UDAN scheme.
In February 2025, the airline had a market share of less than 1 per cent by ferrying only 86,000 passengers.
Last month, Minister of State for Civil Murlidhar Mohol informed Rajya Sabha in a written reply that Alliance Air has made a loss of around ₹535 crore in the first ten months of FY 2025 (provisional) with a grounding of half its fleet.
Between FY22 and FY24, the airline posted a loss of ₹1,633 crore.
On the other hand, sources said that the industry might finally show some interest in the airline due to the high growth rate of passenger traffic in the country.
Recent data showed that India’s domestic passenger traffic grew by 11 per cent on a year-on-year basis in February 2025.
The data highlighted that the country’s scheduled domestic flight operators ferried around 1.40 crore passengers in February, up from 1.26 crore a year ago.
Published on April 23, 2025
The centre has restarted roadshows to divest the regional airline Alliance Air after an earlier attempt a few years ago did not conjure up much interest from the industry.
Speaking to businessline, industry sources revealed that the responsibility to conduct these roadshows has been given to a consultancy firm.
According to sources, these roadshows which are to be conducted by consultancy firm EY is meant to acquaint potential buyers with the airline’s financial and operational position.
“The divestment process of the regional airline is ongoing. After the roadshows, expressions of interest (EOIs) will be sought,” several sources told businessline.
“The firm incharge for conducting the roadshows has approached a few potential buyers.”
As per sources, industry players such as Bird Group, Fly91 airline, and a few others have been approached.
Notably, grounded aircraft due to supply chain constraints, along with high debt, has been ailing the divestment-bound airline.
As of now, the airline has been kept afloat by state bailouts, as its earnings are used to pay vendors.
In 2023, the central government infused ₹600 crore worth of additional equity in the airline.
Besides, sources told businessline, that the debt is estimated to be (approximately) ₹4,000 crore.
“The debt and a few other liabilities have been onboarded after the divestment of Air India,” sources said.
The airline’s debt is primarily owed to Al Assets Holding Ltd (AIAHL), fuel OMCs, and other vendors.
Alliance Air, sources said requires a fresh round of fund infusion to sustain operations and remain a “going concern” until its divestment process is completed.
At present, the airline has 21 aircraft, of which many are grounded due to engine issues.
The airline is operating to 52 stations in the country. It operates mainly to Tier2 & 3 cities.
Alliance Air is currently a major player in India’s flagship regional air connectivity UDAN scheme.
In February 2025, the airline had a market share of less than 1 per cent by ferrying only 86,000 passengers.
Last month, Minister of State for Civil Murlidhar Mohol informed Rajya Sabha in a written reply that Alliance Air has made a loss of around ₹535 crore in the first ten months of FY 2025 (provisional) with a grounding of half its fleet.
Between FY22 and FY24, the airline posted a loss of ₹1,633 crore.
On the other hand, sources said that the industry might finally show some interest in the airline due to the high growth rate of passenger traffic in the country.
Recent data showed that India’s domestic passenger traffic grew by 11 per cent on a year-on-year basis in February 2025.
The data highlighted that the country’s scheduled domestic flight operators ferried around 1.40 crore passengers in February, up from 1.26 crore a year ago.
Published on April 23, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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