Air India in Star
Given that media reports consistently say that AI is going to be joining Star, it will be a very interesting transformation for AI.
With the new fleet, AI has to be very different from where it is today. It IT systems have to be completely rehauled.
What does Star see in AI?
- Lounge real estate in key international airports. AI is the only Indian carrier to have this edge for legacy reasons. With airport modernization is this still such a big asset?
- Network. Strong O&D market share on international routes from India. AI does not have that good a domestic network. How does Star benefit from that? Maybe they're betting on the Indian merger.
- Renewed fleet. AI is likely to have one of the most modern fleets in a few years. Since joining the alliance will take about 18 months or more, the fleet renewal would have started by then. This may help maintain consistency of the product.
- Service. While in flt service is acceptable (not upto the best in Star) the ground service is terrible. This is an area the alliance probably will see that AI invests in and improves a lot.
I expect LH to be the sponsor to get AI into Star if it is indeed the right alliance. For some reason, as others have said it, I thought Skyteam was a more natural fit for AI.