Alliance Air, a wholly owned subsidiary of Air India Limited has turned a new leaf by reporting an operating profit of Rs. 65.09 crore for the first time since its inception on April 15, 1996.
The airline has reported an EBITDA of Rs. 482 crore, in a total revenue of Rs. 1,181.15 crore. These figures are for the fiscal year 2019-2020. The net profit of Alliance Air would have touched Rs. 37 crore but for the adoption of the new accounting standard IND AS 116, which resulted in a net loss of Rs. 201 crore.
The CMD of Air India, Rajiv Bansal said: “Alliance Air has recorded an improved performance in FY2019-20. The number of destinations has gone up to 61 from 55 in last FY. With the increased number of daily departures to 126 against 109 last year, the total number of passengers flown were 1.64 million, an increase of 2.5% with a seat factor of 73%. This is indeed commendable.”
Mr. Bansal added that the expanded reach of Alliance Air to smaller towns of our country truly embodies the spirit of government’s Regional Connectivity Scheme known as UDAN i.e. Ude Desh ka Aam Nagrik.
In the words of the CEO of Alliance Air, C S Subbiah, “Alliance Air has grown leaps and bounds and has made big strides in its operations and this day is a ‘golden day’ for us for achieving this mile stone of Rs. 65.09 crore operating profit. We have operated 30,649 flights to 61 destinations and 735 weekly flights in 2019-20, with higher utilization of aircraft and with one of the lowest aircraft to manpower ratio of 1:45 in the world. I dedicate this significant achievement to my enthusiastic team, our beloved customers and excellent support from Air India and the Ministry of Civil Aviation”.
The airline has a young fleet of 18 ATR-72-600 aircraft with an average age of less than four years. The airline strives to offer the best service and safety standards in the industry and takes pride in being cost efficient at the same time.
Post lockdown Alliance Air has already started air services to 43 destinations with 77 flight departures per day.
It is the airline’s endeavor to resume full-fledged flight operations across its entire network at the earliest with more flights commencing in the coming festive season.The airline has already operationalised 65 routes under the Regional Connectivity Scheme (UDAN) of Government of India.
Alliance Air’s USP of ‘Connecting India’ with unique routes and destinations and overcoming major challenges has made it the regional flyers’ top choice. Remote destinations such as Kullu and Dharamshala in Himachal Pradesh, Agatti in the Lakshadweep islands, Tezpur, Dimapur, Imphal, Passighat and Lilabari in the North-East are being served by the airline.
Further Alliance Air also connects uncharted destinations such as Pantnagar, Ludhiana, Bikaner, Kolhapur, Kalaburagi, Pasighat, Kandla, Jagdalpur and Jharsuguda demonstrating its constant endeavour to bolster swift connectivity.
The airline’s vision is to be one of the leading International Regional Airlines in the world, connecting Tier 2 and Tier 3 cities of India and linking SAARC cities with Alliance Air network.
Alliance Air’s maiden international flight from Chennai to Jaffna bridged the connectivity gap between the two cities after 41 years. The airline is adhering to all travel related government guidelines and is following all the Standard Operating Procedures (SOPs) issued by the Ministry of Civil Aviation.
Required precautionary measures are being taken within the aircraft as well as at the time of contactless check-in, boarding and arrival at the destination. The aircraft are being sanitized after each flight to eliminate any risk of contagion.