Alliance Air revamp hits a speedbreaker

KOLKATA: In the wake of the recent announcement of the merger of Alliance Air with Air-India Express, the former’s fleet restructuring plan is likely to get modified.

According to airline sources, Alliance Air was bracing for a fleet expansion. Currently this subsidiary, which flies on a cost-competent basis to the North East, operates 11 Boeing 737s and four ATRs, with the latter having been taken on lease. The carrier was going ahead with its plans to induct three more ATRs and six regional jets, initially on lease, in line with its fleet expansion plans. Also, six of the Boeings were to be converted into cargo freighters.

Sources said the entire fleet expansion proposal may now have to be modified in light of the proposed merger of Alliance Air with Air-India Express. Alliance Air is a regional carrier that operates on a cost competent basis.

“We will now have to see how much of these plans can dovetail with the new requirements in light of the proposal to merge Alliance Air and Air-India Express,” said airline sources.

Post merger, the new low-cost entity could look at the smaller airfields in tier two and three towns — for instance, Hubli and Dehra Dun — as potential markets, said sources. The plan, it seems, is to allow the new low-cost carrier to work in a hub and spoke principal with the larger merged entity of Air-India and Indian.

Sources said the merged entity could consider more overseas destinations. Currently, Air-India Express, a low-cost overseas carrier, flies to the USE, Oman, Singapore and Sri Lanka.

Post merger of Air-India and Indian, there will be six business heads, said sources, to look after various units. These are domestic and overseas passenger services; low-cost carrier; maintenance, research and overhaul (MRO) services; ground handling; cargo; and administration, finance, public relations etc, which will supplement all the other five units.