Alliance Air reports first operational profit since inception
Alliance Air is a regional subsidiary of Air India Limited, which operates flights to mostly tier-2 and tier-3 cities and towns and connects them to metro cities across the countryThis includes several daily flights under the government's the regional connectivity scheme
NEW DELHI : Alliance Air, a wholly owned regional subsidiary of Air India Limited, has reported a ₹65.09 crore operating profit for financial year 2019-20 -- its first since its inception in 1996 -- despite reporting an overall net loss of ₹201 crore for the year, the company said in a statement on Thursday.
The airline's total revenue stood at ₹1181.15 crores during 2019-20, on the back of an EBITDA of ₹482 crore.
The net profit of the airline would have touched ₹37 crore but for the adoption of the new accounting standard IND AS 116, the company added.
"Alliance Air has recorded an improved performance in FY2019-20. The number of destinations has gone up to 61 from 55 in last FY (financial year)," said Rajiv Bansal, chairman and managing director of Air India Limited.
"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 (load) factor of 73%," Bansal added.
Alliance Air is a regional subsidiary of Air India Limited, which operates flights to mostly tier-2 and tier-3 cities and towns and connects them to metro cities across the country. The airline, which operates on a fleet of 18 ATR aircraft, currently flies to 43 destinations with 77 flight departures per day due to the ongoing pandemic. This includes several daily flights under the government's the regional connectivity scheme (RCS).
"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," said C S Subbiah, chief executive officer at Alliance Air.
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