Air India to Join the Star Alliance Soon

Monday, 28th January 2013 at 04:01am

Air India may no longer have to wait for some more years to join the global alliance of airlines, Star Alliance. It may happen soon this year, given the favorable response it got from most of the 27 member airlines.

Air India is somewhat lucky to get the government's backing for its admission to the alliance. Earlier, the government ruled that a global airline alliance should take in Air India first before any other private carrier. The sound was loud and clear and this obviously helps AI's ascent to the exclusive club of the world's first and largest airline alliance. Jet's chances of joining Star Alliance may not progress after all, following its rumored stake sale to Abu Dhabi-based Etihad Airways. Etihad is not a member of any airline alliance and is currently not interested in joining.

Another factor that may boost AI's chances of getting admitted to the alliance is the absence of other major Indian airlines available for membership. Kingfisher was reportedly planning to join an airline alliance before it ceased operations in October 2012. Its full membership was imminent on February 10, 2012 until the alliance put its membership on hold on February 3, or one full week before its ascension. This was due to the prevailing financial crisis that engulfed the airline at that time. Kingfisher has since been grounded and failed to renew its license on December 31, 2012, the day of its expiry.

Air India is now making progress to become the Star Alliance's latest and 30th member following Shenzen Airlines admission, its 29th member, in November 2012.

AI's intention to join the alliance in 2007 was met with rejection from the present members at that time due to poor financial health. In the most recent fiscal year, its financial health improved and has been able to stem losses consistently.

While its membership application on hold, it doesn't seek any refunds yet, preventing other Indian airline to join in any global alliance.

Had it survived crisis, Kingfisher would have been the first airline from India to join a global airline alliance. Skyteam, the second largest alliance, is said to have shown interest to invite IndiGo into its roster.

Though the pronouncement of the government against any global alliance to take any Indian airline before Air India was unofficial, it showed the government's strong support of the airline. After all, the airline is owned by the state.

Air India's entry into Star Alliance will pave the way for other Indian airlines to join alliances. Until then, Indian airlines have to wait. Even if talks between Jet Airways and Etihad fall on the wayside, Jet won't still be able to join the alliance before Air India's admission.

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