Aircraft from Alliance Air experiences sudden drop, leaving 80% of their fleet grounded

Published on August 31, 2025

Alliance Air, a regional airline operating under the Udan scheme, is grappling with ongoing issues that have led to a significant reduction in its fleet size and increased financial losses.

Ameya Joshi, the founder of aviation blog Network Thoughts, stated that the dwindling fleet will exacerbate losses due to ongoing costs but revenue opportunities remain limited. The airline's fleet currently comprises 21 aircraft, including 20 ATR aircraft and one Dornier 228 plane. However, since last week, 80% of the fleet has been grounded due to sourcing challenges and delays in overhaul of engines, exacerbated by timely payment issues with Original Equipment Manufacturers (OEMs), lessors, and maintenance repair and overhaul shops.

An Alliance Air executive cited global supply chain issues and spare parts availability as significant challenges. The executive also mentioned discussions with ATR to improve the fleet situation, which were scheduled for September.

The grounding of the aircraft has impacted nearly 27,000 passengers, who were refunded or rebooked by the airline. Despite these challenges, the civil aviation ministry and Alliance Air did not respond to emailed queries.

In the first ten months of the financial year 2024-25, the airline's losses amounted to ₹535.45 crore. This follows a loss of ₹1633 crore between Financial Years 2022 and 2024.

Lessor concerns with Alliance Air are around preservation of grounded planes, according to an industry source. However, there are no search results indicating which companies are currently negotiating with Alliance Air to resolve issues with spare parts deliveries and engine maintenance.

Alliance Air operates majority of its routes under the Udan scheme and is the sole carrier at airports such as Amravati, Bilaspur, Hisar, and Keshod. The airline had planned 520 weekly departures in the summer schedule but had a high cancellation rate in three of the four months in Financial Year 2025-26, according to Directorate General of Civil Aviation (DGCA) data.

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Aircraft from Alliance Air experiences sudden drop, leaving 80% of their fleet grounded