Alliance Air (formerly Air India Regional) is a wholly-owned subsidiary of AIAHL (AI Assets Holding Ltd.) which is a Special Purpose Vehicle (SPV ) formed by Government of India after the disinvestment of Air India Limited. It was founded in April 1996 as a wholly-owned subsidiary of Indian Airlines (later merged with Air India in 2011 and remained a subsidiary till 2022) and mainly operates domestic routes as part of the government's Regional Connectivity Scheme. Alliance Air was founded in April 1996 as a wholly-owned subsidiary of Indian Airlines (merged with Air India in 2011). The parent company wished to make better use of its Boeing 737 fleet, so it wet-leased 12 of these aircraft to Alliance Air. The subsidiary operated its first flight on 15 April 1996. Alliance Air served as a low-cost feeder airline for Indian Airlines, providing connections to the latter's hubs from various smaller cities across the country. In 2002 the airline was offering flights to 44 destinations in India utilizing a fleet of 11 Boeing 737-200s. On 1 April 1997, Vayudoot Airlines, a joint venture of Air India and Indian Airlines Merged with Alliance Air to serve the regional air routes of Northeast India and several other parts of India. More information...
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