ALLIANCE AIR, the new low-cost regional subsidiary of Indian Airlines, is planning to acquire a fleet of 50-seat turboprops for domestic feeder routes.
Alliance Air, previously dubbed Airline Allied Services, had an April launch with the first of 12 Boeing 737-200s to be transferred from its parent (Flight International, 28 February-5 March, P13). It was set up as a more flexible and competitive operation for the Indian domestic market than its parent. Two aircraft are now in service, and a third will be moved over this month. Six aircraft will have been transferred by the end of the year.
Agreements are expected to be reached with state government organisations such as the state-tourism and industrial-development corporations to enable Alliance Air to operate regional feeder routes, both between points in each state and between states.
A fleet of four to ten 50-seat turboprops is envisaged with the Aero International (Regional) ATR 42, Bombardier de Havilland Dash 8, Fokker 50 and Saab 2000 having been evaluated by parent Indian Airlines. A recommendation has been submitted to the Government, which is believed to have shortlisted the ATR 42 and Dash 8. The delivery schedule will be dependent upon the final selection and contract from the Government, but may begin in July 1997.
Alliance is projecting a $31 million turnover in its first year of operations. The funding for the new aircraft is expected to be provided through external commercial borrowings to the tune of around $82 million, arranged by its parent company. Indian also plans to assist with a $20 million loan.
As part of fleet-wide internal-restructuring measures, Air India is to disband its fleet of wet-leased dedicated Ilyushin Il-76 cargo aircraft in a move which could save over $6 million. One of the three aircraft has been withdrawn, while the other two will be removed during August.
Cargo will now be taken on its passenger and combi aircraft. o
Source: Flight International
