Alliance Air to turn cargo operator

National carrier Air India is all set to convert its regional airline subsidiary, Alliance Air, into a full cargo operator. The airline mooted this proposal at a review meeting held with top brass of the civil aviation ministry.
“This is one of the options that the airline is looking at to restructure itself. The airline has expressed its interest to convert Alliance Air into a full cargo operator. However, nothing has been finalised as of now,” a senior aviation ministry official told Financial Chronicle.
At present, Alliance Air provides road feeder and handling services, in add­ition to personnel services to over 110 inte­rnational airlines. On domestic front, the carrier mainly flies over 300 weekly flights on over 40 routes mainly in the non-metro cities. The airline also focuses on northeastern regions.
With Alliance Air, the government wanted to ensure better air conn­ectivity on non-profitable routes. However, once it fully becomes a cargo entity, connectivity to faraway cities would be limited, as regular airlines have limited exposure in these markets.
Alliance Air has about 20 aircraft, a mix of Boeing 737-200, ATRs and CRJs.
12/01/10 Parul Chhaparia/mydigitalfc.com

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Categories: Air India Regional Jan 2010, Cargo Jan 2010, NACIL Jan 2010, New Jan 2010