Air India's Woes To Continue Despite Its Induction To The Alliance

Sunday, 29th June 2014 at 03:45am

Air India finally figured in a positive news recently, this time it's its scheduled induction next month as Star Alliance's newest full-member airline.

The state-owned flag carrier will formally join the alliance this July 11. However, analysts doubt if its induction to the world's largest global alliance is a guarantee to bail itself out from financial woes that it is battling for years.

The joining of an airline in an alliance has lots of advantages that passengers and the airline itself can benefit from. So Air India can't be faulted if it is very excited to accept Star Alliance CEO's invitation to reapply for membership in December last year.

One major advantage is that it is possible to expand your market without needing to spend millions of hard-earned dollars to place a global ad campaign across major networks. Needless to say, Air India can possibly get as many bookings as it can from all other airlines in the alliance, thereby enabling it to fill seats that it badly needs to grow its revenue.

The passengers who will benefit the most from the alliance are the frequent fliers as well as business travelers because it is they who crisscross the world more frequently.

Most passengers usually choose an airline with the most codeshares with other carriers around the world. Simply because they can book a ticket to a destination even if the airline doesn't actually fly there. Instead, it's its partner airline that will take them to their destination.

Air India's ascension to the Star Alliance pedestal will surely provide the carrier much needed boost to stem its losses and possibly get out from indebtedness.

Business travelers of the state-owned airline and its frequent flyers will suddenly enjoy an extensive array of perks and benefits such as access to over 1,000 lounges around the world and a host of mind-boggling good news awaiting them soon.

Another good thing about Air India's joining the alliance is that customers can expect a much improved products and services that the airline is compelled to do to match the level of efficiency or quality other airlines under the alliance have.

By: Pete Lee.