Air India Regional
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- Business model
Air India Regional (formerly known as Alliance Air) is an Indian airline which originally commenced services as a low-cost unit of Indian. As part of Indian's merger with Air India, it was renamed Air India Regional.
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AAI confident of larger carriers entering service to smaller airports in Shillong, Tezpur and Lilaba
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Star Alliance yesterday announced that its members had decided to “put Air India’s alliance membership application on hold”. The beleaguered carrier had been given until 31-Jul-2011 to demonstrate its suitability for membership.
Airline traffic growth in India remained in the double digits in Jan-2011 with growth of 21% year-on-year to start the year. This marks two consecutive Januarys of traffic growth with domestic traffic up 106% from Jan-2006 levels. Domestic traffic is now some 48% above Jan-2009 levels, 27% above Jan-2008 levels and 44% above Jan-2007 levels.
Air India, India’s state-owned national carrier, is continuing to struggle to cope with continued and significant losses and accumulated high debt levels as it seeks another government equity infusion. Air India is facing pressure to turn around its operations not only from within but from Star Alliance, with formal entry into the alliance dependent on achieving certain membership requirements which Air India has been slow to meet.