Alliance Air
An Indian regional airline focused mainly on domestic connectivity and underserved airports. An Indian regional airline brand associated with Air India, serving domestic routes linking cities and remote regions.
Last updated October 30, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Alliance Air is an Indian regional airline headquartered in New Delhi. It operates primarily domestic passenger services, linking smaller and medium-sized Indian cities with larger metropolitan areas and supporting the government’s regional-connectivity objectives. The airline is especially associated with the UDAN scheme, under which it has served routes to airports that are unserved or underserved by larger carriers. The business was established in April 1996 as a wholly owned subsidiary of Indian Airlines. It began flying on 15 April 1996 and initially functioned as a feeder carrier for its parent, connecting smaller cities to Indian Airlines hubs. Indian Airlines wet-leased 12 Boeing 737 aircraft to the new airline. In 1997, flight operations inherited from Vayudoot, which had been merged into Indian Airlines several years earlier, were transferred to Alliance Air. By 2002, the airline served 44 Indian destinations with a fleet of Boeing 737-200 aircraft. The airline’s corporate identity changed following the restructuring of India’s state-owned airline sector. After Indian Airlines was merged with Air India, a process completed in 2011, Alliance Air became an Air India subsidiary and was rebranded as Air India Regional. Its fleet subsequently shifted toward turboprop aircraft better suited to short regional sectors and smaller airports. Air India announced in 2013 that it would dry-lease ATR 72 aircraft to replace older regional equipment, and Alliance Air received its first ATR 72-600 in December 2014. The final CRJ700 aircraft left the fleet in 2017. Alliance Air was given a role in implementing the Indian government’s UDAN regional-connectivity programme in 2016. It ordered ten ATR 72 aircraft in October of that year, strengthening its ability to operate economical services between regional airports. The airline also broadened its operating capability through a limited international service between Chennai and Jaffna, Sri Lanka, launched in November 2019. The route was suspended during the pandemic period, resumed in 2023, and was later terminated in November 2024. The carrier reported its first operating profit in the 2019–20 financial year, although it remained part of a heavily restructured state-owned aviation ecosystem. When Air India was sold to Tata Sons on 8 October 2021, Alliance Air was excluded from the transaction. Instead, it was transferred to AI Assets Holding Limited, a government-owned special-purpose vehicle established to hold Air India’s retained assets and liabilities. Alliance Air began operating independently from Air India on 15 April 2022 and restored its Alliance Air branding. The post-separation airline has emphasized aircraft suitable for regional routes. In 2021 it agreed with Hindustan Aeronautics Limited to lease two 17-seat Dornier 228 aircraft. The first was delivered in April 2022, and Alliance Air became the first airline to use an Indian-made aircraft in commercial civil aviation operations. It also agreed in 2022 to acquire two ATR 42 aircraft intended for smaller airfields, including routes in the Himalayan region. By May 2024, the airline served 57 destinations from operational bases or hubs at Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. Its reported fleet at that time included ATR 72-600, ATR 42-600, and Dornier 228 aircraft. Alliance Air’s positioning is therefore distinct from that of India’s large nationwide low-cost carriers. Its network is narrower, its aircraft are generally smaller, and its commercial role is closely connected to public-policy goals around regional access. The airline remains a government-controlled regional operator under AI Assets Holding Limited. A possible future sale has been discussed in connection with the government’s efforts to manage retained aviation liabilities, but no completed sale is established in the supplied reference material. Alliance Air is a regional airline brand within the Air India system. Established in 1996, it focuses on domestic services in India, linking major cities with regional centres and more remote destinations. Its role is to complement trunk-route networks by serving markets that may not support larger aircraft. The airline has operated turboprop and regional jet aircraft, including aircraft from the ATR and CRJ families. Because the available material does not reliably establish its current ownership structure, fleet size, route count, or degree of operational independence, those details are not expanded here. Alliance Air’s positioning therefore differs from India’s large national low-cost carriers. Its network is narrower, its aircraft are generally smaller, and its commercial role is closely tied to public-policy objectives for regional access. The airline remains a government-controlled regional operator under AI Assets Holding Limited. Possible future sale has been discussed as part of government efforts to manage retained aviation liabilities, but the provided references do not establish a completed sale.
History
Alliance Air was created in April 1996 as a wholly owned regional subsidiary of Indian Airlines and began flying on 15 April of that year. Its initial purpose was to feed passengers from smaller Indian cities into the Indian Airlines network. The parent carrier supplied the new company with wet-leased Boeing 737 aircraft. In 1997, operations inherited from Vayudoot were transferred to Alliance Air, broadening its regional role. By 2002, the airline served 44 destinations with Boeing 737-200 aircraft. The Indian government’s airline restructuring changed Alliance Air’s corporate position. Indian Airlines was merged with Air India in a process completed in 2011, after which Alliance Air became an Air India subsidiary and was renamed Air India Regional. During the following years, the carrier moved toward turboprops suited to shorter routes and smaller airports. Air India announced plans in 2013 to dry-lease ATR 72 aircraft, and Alliance Air received its first ATR 72-600 in December 2014. The last CRJ700 aircraft was retired in 2017. Alliance Air became an important operator in the government’s UDAN regional-connectivity programme. In 2016 it was assigned a role in developing services to unserved and underserved airports, and it ordered ten ATR 72 aircraft in October of that year. The airline also launched its first scheduled international service, from Chennai to Jaffna, on 11 November 2019. That route was suspended in 2020, resumed in July 2023, and ended in November 2024. The airline reported an operating profit of ₹650.9 million for the 2019–20 financial year. Its corporate ownership changed again during Air India’s privatization. Air India was sold to Tata Sons on 8 October 2021, but Alliance Air was excluded from the transaction. The government transferred it instead to AI Assets Holding Limited, a special-purpose vehicle retaining selected Air India assets and liabilities. Alliance Air resumed independent operations on 15 April 2022 and restored its original brand. The independent airline has continued to develop a fleet for regional markets. In September 2021 it agreed with Hindustan Aeronautics Limited to lease two 17-seat Dornier 228 aircraft. The first aircraft was delivered on 7 April 2022; after entering service, Alliance Air became the first airline to use an Indian-manufactured aircraft in commercial civil aviation operations. In February 2022, it also agreed to acquire two ATR 42 aircraft intended for smaller airfields, including Himalayan routes. By May 2024, Alliance Air operated to 57 destinations in India from bases or hubs at Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. Its reported fleet included ATR 72-600, ATR 42-600, and Dornier 228 aircraft. The company’s identity remains tied to state-supported regional access rather than the scale and network breadth of India’s largest commercial airlines. Alliance Air was established in 1996 as a regional airline brand serving the Indian domestic market. Its operations have focused on regional passenger services, using comparatively smaller turboprop and regional jet aircraft to connect major cities, regional centres, and remote destinations. Within the Air India system, its role has been to complement larger-aircraft networks by serving lower-density routes and smaller airports. The available material is insufficient to reliably reconstruct its ownership changes, brand development, fleet history, or detailed route expansion, so no further unverified chronology is provided.
- 2022
Independent operations and Alliance Air branding resume
[1]The airline separates operationally from Air India on 15 April and restores the Alliance Air name.
- 2022
Dornier 228 enters commercial airline service
[1]Alliance Air receives a HAL-modified Dornier 228 and becomes the first airline to use an Indian-made aircraft in civil commercial operations.
- 2021
Transferred to AI Assets Holding Limited
[1]Alliance Air is excluded from the Air India sale to Tata Sons and remains under government ownership through AI Assets Holding Limited.
- 2019
First scheduled international route begins
[1]The airline launches scheduled service between Chennai and Jaffna on 11 November.
- 2016
Selected for UDAN regional connectivity
[1]Alliance Air is assigned a role in the Indian government’s scheme for connecting unserved and underserved airports and orders ten ATR 72 aircraft.
- 2014
First ATR 72-600 enters the fleet
[1]The airline receives its first ATR 72-600 as it transitions toward turboprop regional operations.
- 2011
Rebranded as Air India Regional
[1]Following the Indian Airlines–Air India merger, Alliance Air becomes an Air India subsidiary and changes its operating brand.
- 2002
Network reaches 44 destinations
[1]Alliance Air is reported to serve 44 Indian destinations using Boeing 737-200 aircraft.
- 1997
Vayudoot operations move to Alliance Air
[1]Flight operations associated with Vayudoot are transferred to Alliance Air.
- 1996
Alliance Air is established
[1]Indian Airlines establishes Alliance Air as a wholly owned regional subsidiary, and the airline begins operations on 15 April.
Products and positioning
Government-linked Indian regional airline focused on connecting smaller and underserved markets with larger cities through short-haul aircraft.
Air transportation · 1996
Scheduled domestic passenger services
Alliance Air’s core offering is scheduled passenger transportation within India. The network is designed around regional and short-haul routes, connecting smaller cities and airports with larger urban centres. Services are generally operated with turboprop aircraft, allowing the airline to serve markets where demand, runway infrastructure, or route length may not justify larger jets.
Regional aviation programme · 2016
UDAN regional-connectivity services
Alliance Air operates routes associated with UDAN, the Indian government’s regional-connectivity programme. These services support travel from unserved or underserved airports and give the airline a public-service and network-development role beyond conventional commercial route selection.
Regional air transport · 2014
ATR regional fleet services
ATR 72-600 and ATR 42-600 aircraft form the principal turboprop platform associated with Alliance Air’s regional network. Their capacity and operating economics suit short sectors, lower-density routes, and airports where regional connectivity is the main requirement.
Small-airport regional aviation · 2022
Dornier 228 passenger services
The 17-seat Dornier 228 gives Alliance Air a smaller-capacity aircraft for routes to particularly small or geographically challenging airports. The aircraft was modified by Hindustan Aeronautics Limited for commercial operations and represents an Indian-made platform adapted for civil passenger service.
International passenger route · 2019
Chennai–Jaffna service
Chennai–Jaffna was Alliance Air’s first scheduled international route. It began in 2019, was suspended during the pandemic period, resumed in 2023, and was later discontinued in November 2024.
Marketing campaigns
- 2016UDAN regional connectivity programme
India
Alliance Air was assigned a role in the Indian government’s UDAN initiative to improve air access to unserved and underserved airports. The programme became a central part of the airline’s regional-market strategy.
Outcome. The airline continued operating regional services under the programme and expanded its turboprop fleet to support those routes.
Brand decisions
2022
Introduce Dornier 228 commercial serviceProduct launchBackground
Alliance Air sought an aircraft with lower capacity and strong suitability for smaller regional airports.
Action taken
The airline leased two 17-seat Dornier 228 aircraft from Hindustan Aeronautics Limited, with the first delivered in April 2022.
Aftermath
Alliance Air became the first airline to use an Indian-made aircraft in commercial civil aviation operations.
2021
Retain Alliance Air outside the Air India saleM&ABackground
The Government of India sold Air India to Tata Sons but excluded certain retained assets and liabilities from the transaction.
Action taken
Alliance Air was transferred to AI Assets Holding Limited, a government-owned special-purpose vehicle.
Aftermath
The airline remained state-controlled and later resumed operations independently of Air India under its original name.
Reported valuation. approximately ₹2 billion (2021)
2019
Launch Chennai–Jaffna international serviceProduct launchBackground
Alliance Air sought to add an international link from southern India while retaining its regional-airline profile.
Action taken
The airline inaugurated scheduled service between Chennai and Jaffna on 11 November 2019.
Aftermath
The route was suspended in 2020, resumed in July 2023, and terminated in November 2024.
2016
Expand through UDAN and ATR aircraft ordersStrategyBackground
The Indian government sought to connect airports with limited or no scheduled air service.
Action taken
Alliance Air was delegated a role in UDAN and ordered ten ATR 72 aircraft in October 2016.
Aftermath
Regional connectivity became a defining part of the airline’s operating model and network development.
2013
Replace older regional aircraft with ATR turbopropsGeneration changeBackground
The airline needed to modernize its regional fleet and improve suitability for short routes and smaller airports.
Action taken
Air India announced plans to dry-lease eight ATR 72 aircraft for Alliance Air, beginning a transition away from older regional equipment.
Aftermath
The first ATR 72-600 arrived in December 2014, and the final CRJ700 aircraft was phased out in 2017.
Recent events
Alliance Air announces Guwahati–Shillong–Dimapur flights[3]
Reported:
Alliance Air announced that it would commence flight operations from Guwahati to Shillong and onward to Dimapur from November 22, 2021.
Alliance Air launches daily Kalaburagi–Mysuru service via Bengaluru[4]
Reported:
Alliance Air launched a daily air service connecting Kalaburagi and Mysuru via Bengaluru under the Indian government's regional connectivity scheme.
Alliance Air launches Ahmedabad–Kandla flight[5]
Reported:
Alliance Air launched its first direct flight between Ahmedabad and Kandla, operating five days a week under the UDAN-RCS scheme.
Sources6 sources
- 1Alliance Air (India)en.wikipedia.org
- 2https://www.airindia.in/alliance-airairindia.in
- 3Alliance Air宣布开通古瓦哈提—西隆—迪马普尔航线sentinelassam.com
- 4Alliance Air开通经班加罗尔往返卡拉布拉吉与迈索尔的每日航班thenewsminute.com
- 5Alliance Air开通艾哈迈达巴德至坎德拉航班business-standard.com
- 6Alliance Air launches flights from Bilaspur under UDAN schemebusiness-standard.com
Cite this profile: Cite the canonical profile. /brand-wiki/alliance-air · Editorial policy · How profiles are compiled