Air India resumes plan to join Star Alliance
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Air India will restart the process of joining the Star Alliance, two years after its previous membership bid stalled.
At a board meeting held in Vienna on Friday, Star Alliance’s member airlines unanimously agreed to recommence the integration process with India’s national carrier.
“Star Alliance has long held the opinion that India is such an important aviation market that it should be fully represented in the alliance,” said Mark Schwab, Star Alliance’s CEO. “However the level of change in the domestic market in recent years did not make it easy for an airline to become an alliance member.”
The Indian national carrier was originally accepted as a future member of Star Alliance in December 2007, but the integration process was halted in July 2011.
Air India has experienced a difficult few years, with the Indian Airlines merger, several periods of industrial action and strong competition severely impacting its profits. The state-backed airline has also been forced to rely on several government bailouts in order to stay afloat.
But recent years have shown signs of improvement for the national carrier, with pre-tax earnings returning to the black in the 2012-13 financial year, and deliveries of new aircraft, including the fuel-efficient Boeing 787 Dreamliner.
“The market in India is now showing signs of stabilisation. Today we see an Air India which has successfully completed its merger with Indian Airlines and is building up a new fleet that forms the basis for a much improved level of service. This is why we believe the time is now right to recommence the integration process,” said Schwab.
Rohit Nandan, Air India’s chairman & managing director, called the move “an historic day for Air India”.
“The decision to recommence the Star Alliance integration process will be beneficial for both sides. We are grateful for the warmth, support and encouragement with which all Alliance members have welcomed the decision,” he added.
Air India will become the 29th full member of Star Alliance, and the ninth in the Asia Pacific region following Air China, Air New Zealand, ANA, Asiana Airlines, EVA Air, Shenzhen Airlines, Singapore Airlines and Thai Airways.
It will also become the first Indian airline to join one of the traditional ‘big three’ airline alliances. Kingfisher Airlines had been scheduled to join oneworld before its financial problems forced the plan to be abandoned.
Comments are closed.