Alliance Air was a low-cost airline based in New Delhi, India. It operates 357 weekly flights to 44 domestic destinations and was a subsidiary of Indian Airlines. Its main base is Indira Gandhi International Airport, Delhi. Following the merger of Indian Airlines with Air India the airline's 737-200 aircraft were withdrawn from service and the airline was renamed Air India Regional.
The airline was established on 1 April 1996 and started operations on 21 June 1996. It is wholly owned by Indian Airlines. The future of this airline remains undecided, because Indian the parent company, is considering converting five Boeing 737-200 aircraft of Alliance Air into freighters. With the merger of Air India and Indian Airlines now complete, Air India Express and Alliance Air, are due to integrate their operations next month, with this the Alliance name is expected to be eliminated