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Alliance Air receives funding of Rs 11,158 cr from government

Friday, 02 Feb 2024
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Alliance Air, a government-owned airline, receives a boost in the budget with the Finance Minister proposing an infusion of Rs 1,158 crore in FY25. This compares with the Rs 1,174 crore allocated in the previous budget, but it comes after an additional Rs 600 crore infused subsequently.

As the Centre approved the capital infusion plan, the funds will be utilised for working capital and to partially reduce debt, and will aid the airline in facing the current financial turbulence. For FY25, the budget also allocated Rs 502 crore towards India's regional air connectivity scheme UDAN (Ude Desh ka Aam Nagrik).

According per the Minister, doubling the number of airports in the country to 149, opening 517 new air routes and the entry of 15 million new fliers will give a massive boost to the civil aviation sector. Additional 517 new routes are being added; indicating a substantial expansion of air travel accessibility.

Alliance Air is a major operator under the UDAN scheme, with around 60 flights daily. The airline will add flights to Agatti in Lakshadweep, and Arunachal Pradesh. Additionally, a feasibility study will be done to assess the viability of connecting other Indian cities to Agatti.

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