Alliance Air not to be merged with Indian

New Delhi: Alliance Air, the 100% subsidiary of Indian Airlines (I-A) is likely to get a fresh lease of life as the board of the state-owned carrier is believed to have struck down the option of merging it with itself. According to sources, the option is not possible since Alliance Air follows a 'contractual' model of employment and hence cannot be merged with Indian.
The other option of repositioning it as a low-cost carrier has also been rejected, the sources said.
Airline Allied Services Ltd, a wholly-owned subsidiary of Indian Airlines Ltd, was formed in 1983 with an investment of Rs 2.25 crore till March 2004. The company started operations from 1996 under the name 'Alliance Air' with 12 Boeing 737 aircraft. Apart from facing acute shortage of pilots, Alliance Air's revenues have also not been healthy for some time.
03/05/06 Financial Express

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