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Star gives Air India July 31 deadline to meet entry requirements
By Kurt Hofmann | May 10, 2011
Star Alliance CEO Jaan Albrecht told ATW that Air India has until July 31 to fulfill the requirements to join the airline grouping or the carrier's invitation will be withdrawn."The process for AI to fulfill its requirements has now taken nearly four years," he noted. "We will not extend this deadline anymore. One day there must be a final point." Nevertheless, he added, "We expect that AI will make it."
Former AI COO Gustav Baldauf, who resigned earlier this year, said AI will have difficulty meeting the deadline. "I strongly believe that AI will not fulfill all the necessary requirements to be able to join Star by the end of July," he told ATW. "AI is simply not ready for Star."
AI may be in a better position to meet Star's requirements following the resumption of normal operations on Monday after a disruptive 10-day strike by a portion of its pilots came to an end on Friday. The work action by about 800 former Indian Airlines pilots led to more than 1,000 flight cancellations.
AI was originally slated to join Star in 2010 but has had trouble meeting the alliance's membership standards regarding IT systems and other areas. The state-owned carrier has struggled financially in recent years and is attempting to gain the backing of Indian bankers for a comprehensive restructuring plan.
Albrecht said that "the Indian government is very well informed that AI has to fulfill the requirements" to become a Star member.
When asked what happens if AI fails to meet the standards for joining Star, Albrecht said, "There is no plan B. But in the contract between Star and AI it is mentioned that [the airline] will not be in an exclusive position" in India. Similar to the US and China, India is a market in which Star believes more than one member is necessary "and Jet Airways has always been a factor. Even when AI becomes a member, we will keep our door open [for a second Indian partner]."
A network overlap between two Indian carriers within one alliance would be possible, he added. "But we also believe traffic streams within India will concentrate, there will be a split of the market and the need to feed hubs will be necessary," he explained.
Albrecht said Star has shown a great deal of patience with AI. "It is a complex process," he commented. "By the end of July, we will have a clear vision of where Star and AI stand."
ATWOnline
By Kurt Hofmann | May 10, 2011
Star Alliance CEO Jaan Albrecht told ATW that Air India has until July 31 to fulfill the requirements to join the airline grouping or the carrier's invitation will be withdrawn."The process for AI to fulfill its requirements has now taken nearly four years," he noted. "We will not extend this deadline anymore. One day there must be a final point." Nevertheless, he added, "We expect that AI will make it."
Former AI COO Gustav Baldauf, who resigned earlier this year, said AI will have difficulty meeting the deadline. "I strongly believe that AI will not fulfill all the necessary requirements to be able to join Star by the end of July," he told ATW. "AI is simply not ready for Star."
AI may be in a better position to meet Star's requirements following the resumption of normal operations on Monday after a disruptive 10-day strike by a portion of its pilots came to an end on Friday. The work action by about 800 former Indian Airlines pilots led to more than 1,000 flight cancellations.
AI was originally slated to join Star in 2010 but has had trouble meeting the alliance's membership standards regarding IT systems and other areas. The state-owned carrier has struggled financially in recent years and is attempting to gain the backing of Indian bankers for a comprehensive restructuring plan.
Albrecht said that "the Indian government is very well informed that AI has to fulfill the requirements" to become a Star member.
When asked what happens if AI fails to meet the standards for joining Star, Albrecht said, "There is no plan B. But in the contract between Star and AI it is mentioned that [the airline] will not be in an exclusive position" in India. Similar to the US and China, India is a market in which Star believes more than one member is necessary "and Jet Airways has always been a factor. Even when AI becomes a member, we will keep our door open [for a second Indian partner]."
A network overlap between two Indian carriers within one alliance would be possible, he added. "But we also believe traffic streams within India will concentrate, there will be a split of the market and the need to feed hubs will be necessary," he explained.
Albrecht said Star has shown a great deal of patience with AI. "It is a complex process," he commented. "By the end of July, we will have a clear vision of where Star and AI stand."
ATWOnline