AI again shows interest in joining Star Alliance
NEW DELHI: Air India and Star Alliance are resuming talks on the national carrier's membership into the global airline grouping, as Air India is now amenable to a second Indian carrier joining the alliance.
Latest by late March-early April, Air India's top management is slated to meet global airline grouping Star Alliance's new CEO Mark Schwab when he's in India to take talks forward on the membership of India's national carrier body.
The 27-carrier grouping Star Alliance, the biggest airline alliance had denied entry to Air India last year on grounds that it did not meet the minimum joining requirements (MJR) as stipulated in the contract signed in 2007. The Indian government was reportedly upset with Star for insisting on inducting Jet Airways into the alliance.
However the government's and Air India's stance has since changed. Air India CMD Rohit Nandan told ET that he had conveyed to Star Alliance recently its desire to pursue membership.
Nandan in an interview told the Economic Times said that after Air India reached out, the Alliance had responded positively. "Their new CEO will visit India by the end of this month or the next to discuss the membership. We fulfilled all the joining requirements last year. Membership of a second airline was the bone of contention then," he admitted.
An entry into Star Alliance is crucial to its turnaround. By being part of the Alliance would give AI an opportunity to widen its footprint. "Joining an alliance is really important for Air India as this will give the national carrier a better connectivity and access to more traffic," ex joint secretary at the civil aviation ministry Sanat Kaul said.
With the changed stance the national carrier has no problem if a second Indian airline (Jet Airways) joins Star Alliance, said Nandan, and added that Air India however wants the first mover advantage. "All we want is to be the first airline from India to join Star. Other Airlines could join after us," he added.
The Alliance now has a new CEO, who took over this January, from the former Jaan Brecht is also seen as a positive by Air India for making progress in the induction of Air India into the alliance.
Though there has not been much talk between the two parties since last August when Air India's membership was rejected, the airline officials have maintained that it should not be considered a closed chapter.
An AI official, requesting anonymity, said that since membership of the airline was "suspended" and not closed, there is a big possibility of a breakthrough.
Star Alliance's member airlines include German carrier Lufthansa, which founded the alliance, Singapore Airlines, United Airlines, Air China and Japan's All Nippon Airways ( ANA). Overall, the Star Alliance network offers more than 21,200 daily flights to 1,185 airports in 185 countries.
Air India has total debt of Rs 43,000 crore and has accumulated losses of nearly Rs 20,000 crore and has not been able to pay salaries to its 28,000 strong workforce for a few months.
