The airline was established on 1 April 1996 and started operations on June 21, 1996. Wholly owned by Indian Airlines. The future of the airline is not clear, because its parent company, consider swapping five Alliance Air Boeing 737-200 fleet into cargo planes.
With the coalescence of Air India and Indian Airlines, Air India Express and Alliance Air, will combine their operations next month, with this name Alliance is expected to be removed
