With AI's (Air India) membership to Star Alliance put on hold, maybe indefinitely so, both the other major Indian carriers are up for grabs. Both the carriers, AIr India and Jet Airways (9W) have shown preference for Star Alliance and Star Alliance hoped to snag them both, except for Indian Government's stand on another airline joining the alliance that Air India joins.
As I understand the impasse between AI and Star Alliance isn;t going to be resolved until one or the other blinks.
GoI--- If AI joins Star Alliance, actually allowed to join, no other Indian airline can become a member. The duration of this ban was set at two years by GoI, but who knows if the Govt might want to extend it.
Only one Indian airline (AI) in Star Alliance or none.
Star Alliance---Claims that since India is a big and growing market, it needs two Indian carriers. It wants Jet Airways too. Probably to counter Skyteam cornering most of China. If it doesn't get 9W, Star threatened to not allow AI to join and has carried out the threat.
Both (Jet and Air India) or none is the stand taken by Star Alliance.
Having failed to be admitted to Star Alliance, AI has stated that it has other choices, like joining Skyteam. Since GoI would now not allow Any airline to join Star Alliance, 9W has a choice. Either go it alone or join Skyteam.
Of course, every one wants everything. I am sure most people would be OK with Skyteam picking up both AI and 9W. But given a choice, which would be better for Skyetam. AI or 9W?
I have not flown 9W. I have flown AI and IC(which is now a part of IA) and have found them to be no worse than any major carrier. Many. especially Indian members of Star Alliance, have very hostile views about AI. They absolutely detest AI, and prefer 9W, although redemption is said to be easier on AI than on 9W.
AI is owned by the Govt of India and is in financial trouble, but financial troubles and reorganisation under bankruptcy protection is not new to aviation industry.
When Jet Airways first announced operations to the U.S., it was falsely accused by some obscure airline of aiding terrorism.
BAck to the question AI or 9W? Or both?
SeeTheWorld1984
Aug 2, 11, 1:15 pm
This is turning into a Bollywood drama!
It seems a difficult one now. I've read that Skyteam are sending a team to India next week. I think Air India will definately jump the queue and join Skyteam to spite Star alliance. Air India could do 2 things, firstly, join Skyteam and let Jet Airways fend for itself or secondly join Skyteam and to spite Star even more let Jet Aiways join Skyteam too.
I think the first option is more likely but the second would be best. Just look at China! They have a number of airlines in Skyteam, India should do the same! I hope Skyteam gets an Indian carrier soon, I'm loosing out on valuable airmiles and level miles! :)
g.yau
Aug 2, 11, 1:52 pm
Your second option would never work, the government said to each alliance that only one Indian airline is allowed to join each alliance. This basically stops competition between two Indian airliness in the same alliance, if there wasn't this law don't you think OW would have grabbed 9W as well even though they have IT; cause 9W was their second choice, AA had a really strong partnership with 9W.
But I think *A would have no indian airline at the end. cause they threatened GOI that it's both airlines or none. There was a report that out of the 27 *A members, 25 objected AI joining *A. So it's kinda obvious that the 25 members think AI is a waste of space and that 9W should join instead.
Article on the 25 members vote
http://www.moneycontrol.com/news/business/what-went-wrongair-indias-entry-into-star-alliance_571869.html
Yaatri
Aug 2, 11, 5:40 pm
This is turning into a Bollywood drama!
It seems a difficult one now. I've read that Skyteam are sending a team to India next week. I think Air India will definately jump the queue and join Skyteam to spite Star alliance. Air India could do 2 things, firstly, join Skyteam and let Jet Airways fend for itself or secondly join Skyteam and to spite Star even more let Jet Aiways join Skyteam too.
I think the first option is more likely but the second would be best. Just look at China! They have a number of airlines in Skyteam, India should do the same! I hope Skyteam gets an Indian carrier soon, I'm loosing out on valuable airmiles and level miles! :)
Indeed it is an entertaining drama. How can both AI and Star Alliance be so wrong? Twenty five of twenty seven airlines of *A are said to have voted against AI. Star Alliance has made fool out of AI and itself. Won't it serve Star Alliance right if both AI and Jet Airways joined Skyteam?
Why did Star Alliance pursue AI for so long if what it really wanted was Jet Airways? The silly drama is holding the Indian aviation market hostage to the the dishonesty displayed by Star Alliance. AI is not the only airline to have financial troubles. DL, NW and UA went through reoroganisation under bankruptcy protection. AI has access to funds. Since Star Alliance CEO Jan Albrecht said two airlines or none, it has automatically shut the door on itself, as according to its own membership, AI can;t join. :D
31dany
Aug 2, 11, 5:41 pm
Well, I say that 9W would be a good asset to ST, being the best airline in the Indian Subcontinent.
ST should step it up a notch and get to 9W before *A.
I see it this way, China, India, Russia, Mexico and next year Indonesia will have their top carriers in ST. And this will be a great asset for the future. All present and future powerhouses...
Hopefully ST will land the deal with 9W and not miss it like it happened with MH.
Yaatri
Aug 2, 11, 5:56 pm
Your second option would never work, the government said to each alliance that only one Indian airline is allowed to join each alliance. This basically stops competition between two Indian airliness in the same alliance, if there wasn't this law don't you think OW would have grabbed 9W as well even though they have IT; cause 9W was their second choice, AA had a really strong partnership with 9W.
Which law are you talking about? As far as I know, there is no such law. GoI stipulated that no other airline would be allowed to join Star Alliance to compete against AI, for a period of two years. There is no blanket law for all alliances.
Your argument that One World would have grabbed 9W if there had not been such a law is your conjecture. Every alliance would like to grab all the airlines in a given market, but it's not realistic. Airlines have their own interests which are different from those of an alliance. Moreover, 9W prefers Star Alliance, probably because their Indian flyers who are belong to a Star Alliance carrier are very vocally and passionately hostile to AI. Think Tea Prayers and Birthers.
Star Alliance played a game that it seems to be loosing. I think it secretly promised 9W while publicly pursuing AI. At the end it threatened AI, which backfired.
But I think *A would have no indian airline at the end. cause they threatened GOI that it's both airlines or none. There was a report that out of the 27 *A members, 25 objected AI joining *A. So it's kinda obvious that the 25 members think AI is a waste of space and that 9W should join instead.
Article on the 25 members vote
http://www.moneycontrol.com/news/business/what-went-wrongair-indias-entry-into-star-alliance_571869.html
That seems likely. Star Alliance has only itself to blame. It knew GoI's position on another airline joining Star Alliance from the start. It gambled by threatening AI. It probably thought, their threat would force AI/GoI to cave in. You are right that by Star Alliance's logic itself it would not get any Indian airline. It said publicly "Two airlines or none". Since Ai did not qualify, the only option is no Indian member for Star Alliance. That's a choice Star Alliance has made. :D Its CEO, Jan Albrecht should have thought of the implications of his statement threat before he shot his big mouth off.
Although it's best for consumers and Indian aviation that each alliance gets one major Indian carrier, but Star Alliance deserves to be without one, and personally, I would be happy to have both in SkyTeam.