Air India and the Star Alliance (Part II)
#211
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Join Date: Jan 2002
Posts: 22,778
I agree with the this. It's quite obvious that operating A380 on such a short route is silly.
Last edited by Yaatri; Jul 29, 2011 at 10:12 am
#212
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Posts: 22,778
Air India's value to Star Alliance is NOT for the ULH nonstop India-North America routes that are pretty much the only longhaul that Air India operates today.
The real value is the spoke access to the Tier 3 cities in India which are increasingly generating more and more demand for longhaul. He who has the codeshare on Air India metal to Kanpur or Vizag or Guwahati will gain by capturing the longhaul traffic share. Right now, its up for grabs at the gateway. Getting Air India (or any other Indian carrier) into Star means that traffic flow is now captive.
The Star carriers know that Air India is not a threat to their bread-and-butter markets to/from India. They need Air India to feed those services. Conversely, Air India knows they cannot serve every market with marginal demand from India as a spoke (while the Star carriers can as a hub). Hence, Star has a value to Air India.
It's all about the feed. Air India isn't a global player and will never be one. There is no threat, other than to Star Alliance's image by association with
The real value is the spoke access to the Tier 3 cities in India which are increasingly generating more and more demand for longhaul. He who has the codeshare on Air India metal to Kanpur or Vizag or Guwahati will gain by capturing the longhaul traffic share. Right now, its up for grabs at the gateway. Getting Air India (or any other Indian carrier) into Star means that traffic flow is now captive.
The Star carriers know that Air India is not a threat to their bread-and-butter markets to/from India. They need Air India to feed those services. Conversely, Air India knows they cannot serve every market with marginal demand from India as a spoke (while the Star carriers can as a hub). Hence, Star has a value to Air India.
It's all about the feed. Air India isn't a global player and will never be one. There is no threat, other than to Star Alliance's image by association with
#213
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Join Date: Jan 2002
Posts: 22,778
AFAIK LH has already been tapping the tier 3 markets with fares that incorporate AI/9W as a feeder... for example:
What would AI contribute in case they are more in bed with LH? Sales force? Not likely. What else... I'm really trying to find synergies here...
Code:
29JUL11**29JUL11/LH NAGWAS/NSP;AT/TPM ...../MPM 10418 LN FARE BASIS OW INR RT B PEN DATES/DAYS AP MIN MAX R 21+VRCOWAAW 36915 V + - - + + 3+ - R 22 QRFAAW 72425 Q + - - + + - 12M R 23+WRCOWAAW 32715 W + - - + + 3+ - R 24+VRCAAW 63425 V + - - + + 3+ 12M R 25+WRCAAW 56425 W + - - + + 3+ 12M R 26+SRCAAW 48425 S + - - + + 3+ 12M R 27+TRCAAW 43425 T + - - + + 3+ 12M R > PAGE 3/ 3 >fqr 27 FQR 27 29JUL11**29JUL11/LH NAGWAS/NSP;AT/TPM ...../MPM 10418 *** FOR STAR ALLIANCE RTW* SEE FQD XYZXYZ EG:FRAFRA *** LN FARE BASIS OW INR RT B PEN DATES/DAYS AP MIN MAX R 27+TRCAAW 43425 T + - - + + 3+ 12M R > PAGE 1/ 2 ADDON LH0409 SPECIFIED LH0409 ADDON EFF21JUL11 1 * NAG-LH/9W/AI-PNQ/BLR/CCU/HYD/MAA/BOM/DEL-LH-MUC/FRA- LH-VIE/DEL/BOM/MAD/BCN/LIS/ROM/MIL/STO/OSL/CPH/BFS/ BRS/GLA/EDI/MAN/BHX/LON/SNN/DUB/BER/HAM/DUS/MUC/FRA/ PAR/GVA/ZRH/BRU/AMS-LH-YTO/YMQ/NYC/BOS-AC/CO/UA/LH- WAS/CHI/CLE-AC/CO/UA/LH-WAS 2 * NAG-LH/9W/AI-PNQ/BLR/CCU/HYD/MAA/BOM/DEL-LH-MUC/FRA- LH-VIE/DEL/BOM/MAD/BCN/LIS/ROM/MIL/STO/OSL/CPH/BFS/ BRS/GLA/EDI/MAN/BHX/LON/SNN/DUB/BER/HAM/DUS/MUC/FRA/ PAR/GVA/ZRH/BRU/AMS-LH-PHL/NYC/YOW/YMQ/YTO/YUL/YHZ/ BOS/DTT-AC/CO/UA/LH-WAS 3 * NAG-LH/9W/AI-PNQ/BLR/CCU/HYD/MAA/BOM/DEL-LH-MUC/FRA- LH-VIE/DEL/BOM/MAD/BCN/LIS/ROM/MIL/STO/OSL/CPH/BFS/ BRS/GLA/EDI/MAN/BHX/LON/SNN/DUB/BER/HAM/DUS/MUC/FRA/ PAR/GVA/ZRH/BRU/AMS-LH-WAS >
#214
Join Date: Aug 2000
Location: Exile
Posts: 15,656
AI also provides feed to Air France, British Airways, Delta and everyone else.
By locking in Air India, Star Alliance gets the best SPAs and importantly, the foothold in the growth market POS. He who controls the first sector, controls the revenue. If the growth is in Tier 3 cities, the plating carrier is usually the carrier serving the Tier 3. That has huge ramifications on cashflow and leverage for SPAs.
It's network planning 101.
#215
Join Date: Jul 2011
Posts: 37
Efforts on to keep Air India’s date with Star Alliance
http://www.mydigitalfc.com/news/effo...r-alliance-256
Officials of civil aviation ministry and Air India met Star Alliance executives here on Friday ahead of a crucial board meeting of the 27-airline grouping to decide on the entry of the Indian national carrie into the alliance. Officials were tightlipped on the outcome, but indicated that the meeting would continue on Saturday.
A vote on Air India’s entry into Star alliance is expected to take place on Sunday. But indications are that some members in the alliance were opposed to the entry of Air India in view of the open skys policy of the government. Dominant members of the Star Alliance include Lufthansa, Air China, United Air Lines and Air Canada.
But ministry of civil aviation officials said that the carrier had options of joining other international alliances. This was especially in view of threats made by Star Alliance that they could withdraw the invitation to Air India.
Now we know why some members are opposed. They want the Govt to give them more access to Indian airports. If the Govt does oblige I guess AI can take another decade to fulfill the requirements and *A will be waiting to welcome them with open arms.
http://www.mydigitalfc.com/news/effo...r-alliance-256
Officials of civil aviation ministry and Air India met Star Alliance executives here on Friday ahead of a crucial board meeting of the 27-airline grouping to decide on the entry of the Indian national carrie into the alliance. Officials were tightlipped on the outcome, but indicated that the meeting would continue on Saturday.
A vote on Air India’s entry into Star alliance is expected to take place on Sunday. But indications are that some members in the alliance were opposed to the entry of Air India in view of the open skys policy of the government. Dominant members of the Star Alliance include Lufthansa, Air China, United Air Lines and Air Canada.
But ministry of civil aviation officials said that the carrier had options of joining other international alliances. This was especially in view of threats made by Star Alliance that they could withdraw the invitation to Air India.
Now we know why some members are opposed. They want the Govt to give them more access to Indian airports. If the Govt does oblige I guess AI can take another decade to fulfill the requirements and *A will be waiting to welcome them with open arms.
#216
Join Date: Jun 2005
Location: New Zealand
Programs: NZ , QF , MK
Posts: 1,372
Efforts on to keep Air India’s date with Star Alliance
Now we know why some members are opposed. They want the Govt to give them more access to Indian airports. If the Govt does oblige I guess AI can take another decade to fulfill the requirements and *A will be waiting to welcome them with open arms.
Now we know why some members are opposed. They want the Govt to give them more access to Indian airports. If the Govt does oblige I guess AI can take another decade to fulfill the requirements and *A will be waiting to welcome them with open arms.
#217
Join Date: Jul 2011
Posts: 37
I don't know why people seem so determined to find ulterior motives for some *A members being prepared to veto AI. Isn't it enough that they are simply still not ready after being an incredibly generous length of time? Why does there have to be a conspiracy behind the disinclination to take on a member who is not operationally ready to join the alliance?
#218
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Join Date: Jan 2002
Posts: 22,778
I don't know why people seem so determined to find ulterior motives for some *A members being prepared to veto AI. Isn't it enough that they are simply still not ready after being an incredibly generous length of time? Why does there have to be a conspiracy behind the disinclination to take on a member who is not operationally ready to join the alliance?
Why is LH hung up on AI if they have not been ready for 4 years? LH could have walked away any time. Clearly it's a quid pro quo situation and the issue of qualifications is secondary. Had it not been so, AI would have been dumped long ago. Language used by *A CEO"two alliances or none" and retaliatory language used by AI is posturing with both sides, leaving lots of room for speculation and little for the real issue, AI's qualification.
#219
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Efforts on to keep Air India’s date with Star Alliance
http://www.mydigitalfc.com/news/effo...r-alliance-256
But indications are that some members in the alliance were opposed to the entry of Air India in view of the open skys policy of the government.
http://www.mydigitalfc.com/news/effo...r-alliance-256
But indications are that some members in the alliance were opposed to the entry of Air India in view of the open skys policy of the government.
Isn't free trade good? Do the Star Alliance members want to shut every one else out? Don't you think this is a stupid reason kiwiandrew?
#220
Join Date: Aug 2000
Location: Exile
Posts: 15,656
If no such bogeyman exists, blame Pakistan.
#222
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Posts: 22,778
So, it's not picking on AI that's the reason, but losing out to LH and AI.
It's true that *A had many opportunities to wash its hands off AI. But It hasn't. Because LH is pushing for AI's entry. US, probably has no position on AI. CO would oppose it, so would TG, SQ, SAS, AC, Austrian and SWISS. Turkish Airline has been doing brisk business to India since joining Star Alliance. So I wouldn't be surprised if Turkish would oppose AI's entry. Air China might be another opponent. SN would probably prefer 9W over AI. That makes 10 airlines. Of course, I might be completely wrong, and we may never find out who would end voting against AI.
It's true that *A had many opportunities to wash its hands off AI. But It hasn't. Because LH is pushing for AI's entry. US, probably has no position on AI. CO would oppose it, so would TG, SQ, SAS, AC, Austrian and SWISS. Turkish Airline has been doing brisk business to India since joining Star Alliance. So I wouldn't be surprised if Turkish would oppose AI's entry. Air China might be another opponent. SN would probably prefer 9W over AI. That makes 10 airlines. Of course, I might be completely wrong, and we may never find out who would end voting against AI.
I would be very surprised to have Austrian, Swiss and SN vote against AI if their owner LH is in favour, I'm sorry, but I don't find your reasoning plausible where those carriers are concerned. In any case, you seem to be making the assumption airlines that airlines voting against AI have to be involved in some sort of conspiracy. Couldn't their reported opposition be simply because AI has repeatedly failed to live up to their side of the accession agreement? There is plenty of evidence for the latter and no real evidence that I am aware of for the former.
When I made a conjecture about which airlines might vote against AI, I not only admitted of the possibility of my conjecture being all wrong, but said nothing that you or anyone could take as portraying AI being picked on, unless you have not read my post in entirety, misunderstood it, or are convinced of your pre-conceived notion that I have said that AI is being picked on.
Why would SN, LX or OS vote against AI when LH wants AI in? Proxy for LH is simple answer. When information,such as opposition by certain unnamed airlines is leaked out, there is a reason for that. Improving one's position in the bargaining game. Your mind is set in concrete , that's why you continue to insist that other star members are being blamed for AI's problems, when they are not. All I have done is attempt to guess which airlines might vote against AI's entry. Executive committee could have met as scheduled, voted on AI's entry and declared AI a winner or a loser, without getting into this game of chess with GoI.
Your point that AI has tremendous clout with the government of India is, if anything, a point in favour of *A members voting for rather than against AI even if they have their doubts. Indeed I would argue that is exactly why *A has not previously shown AI the red flag. I am sure that any other candidate airline making such a poor showing of meeting the agreed standards would not have been given more than 3 years to shape up, they would have been told to get lost long ago.
Now repeat after me, "What's going on is not victimisation of AI, but horse trading and bargaining through proxy and public posturing which has involved finnacial staus of the airline when that really has never been an issue. It's an issue for Indian taxpayers, not for Star Alliance.
#223
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Oh come on B747-437B. You know I have never said any such thing. It's simple posturing.
#225
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I don't know why people seem so determined to find ulterior motives for some *A members being prepared to veto AI. Isn't it enough that they are simply still not ready after being an incredibly generous length of time? Why does there have to be a conspiracy behind the disinclination to take on a member who is not operationally ready to join the alliance?