What Will Air India Get From Star Alliance?

Tuesday, 8th July 2014 at 03:10am

Membership to an alliance always connotes strength. The alliance is the sum of the strength of all its members. With Air India's entry into the alliance, surely, Star Alliance will be one more airline strong, now a 27-strong alliance banding together drawing each other's strength.

But what will Air India get out of its membership in the alliance? Quite a few is just an understatement. It's hard to quantify but for sure, mutual interests abound in this union of 27 airlines plus its 25 affiliate members.

Including Air India, Star Alliance group has 27 full-member airlines and their affiliates. It was founded in 1997 by five original members, namely, Scandinavian Airlines, Thai Airways International, Air Canada, Lufthansa, and United Airlines, making it the world's first airline global alliance.

Air India, like everyone else in the alliance, will enjoy the 'alliance benefits', while the other members will get the chance to gain access to a country considered as one of the world's largest aviation markets.

The alliance essentially opens up an opportunity to all members to gain access to each member's own route network making round-the-world travel smooth and hassle-free for travelers who take flights of one or more member airlines. Call it seamless travel.

The more the members, the better it gets�"more route networks, bigger market for each member airline, smoother travel for passengers, etc. Air India should take advantage of the huge opportunity that awaits them in order to maximize its benefits in joining the alliance.

There are a lot of opportunities abound in the alliance like closer ties with one another through shared facilities like airport lounges, codeshare flights, and even shared management at airports.

Air India is expected to grow its international market up to 28% with the alliance. The alliance, on the other hand, is projected to expand its market share in India to 30% with Air India's market reach. Except Air India, 13 Star Alliance member airlines currently fly to 10 cities across India.

Air India will be able to add 10 more destinations on top of its existing 33 international destinations through its association with Star Alliance. However, the main focus for now is the lucrative markets of the Gulf countries where millions of Indian expats work as laborers and professionals. But first, it has to deal squarely with the three behemoths: Emirates, Etihad and Qatar Airways.

By: Pete Lee.