Air India and the Star Alliance (Part II)
Jul 7, 2011, 2:09 am
#46
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News about Shenzhen Airlines joining Star and a very interesting part about Air India... Air India will only allowed to join if the Indian Government let a second airline (Jet?) join the alliance. Star has stated that it will be both airlines or none...
http://www.centreforaviation.com/new...rn-china/page1
http://www.centreforaviation.com/new...rn-china/page1
Star aims to have two members from India
While at the Shenzhen ceremony, Mr Albrecht said Star believes it needs two Indian members to adequately cover that market and he has informed the Indian government Star will only let Air India join if the government allows the alliance to add a second Indian member. “It will be two (members) or nothing,” Mr Albrecht said.
Air India was accepted over three years ago as a new member of Star but has repeatedly delayed formally joining as it has struggled to meet the alliance’s membership requirements. Star earlier this year said Air India had been provided a final deadline of 31-Jul-2011 to meet the membership requirements. An audit is now being conducted to see if Air India is finally in compliance with all the requirements. If Air India is in compliance and if the Indian government does not insist that Air India can be the only Star member, a formal joining date will be announced.
However, Mr Albrecht said Star will not let Air India proceed with joining if the Indian government insists Air India can be the only Star member. He says all airlines in India need ministry approval to join a global alliance and Star needs to know if the government would be willing to provide approval to a potential second Indian member. Star wants to recruit a second member after Air India joins because the Indian market is too big and important to have just one Indian member. “We’re meeting with the ministry in two weeks to discuss what the next step will be,” Mr Albrecht said.
While at the Shenzhen ceremony, Mr Albrecht said Star believes it needs two Indian members to adequately cover that market and he has informed the Indian government Star will only let Air India join if the government allows the alliance to add a second Indian member. “It will be two (members) or nothing,” Mr Albrecht said.
Air India was accepted over three years ago as a new member of Star but has repeatedly delayed formally joining as it has struggled to meet the alliance’s membership requirements. Star earlier this year said Air India had been provided a final deadline of 31-Jul-2011 to meet the membership requirements. An audit is now being conducted to see if Air India is finally in compliance with all the requirements. If Air India is in compliance and if the Indian government does not insist that Air India can be the only Star member, a formal joining date will be announced.
However, Mr Albrecht said Star will not let Air India proceed with joining if the Indian government insists Air India can be the only Star member. He says all airlines in India need ministry approval to join a global alliance and Star needs to know if the government would be willing to provide approval to a potential second Indian member. Star wants to recruit a second member after Air India joins because the Indian market is too big and important to have just one Indian member. “We’re meeting with the ministry in two weeks to discuss what the next step will be,” Mr Albrecht said.
Jul 7, 2011, 2:15 am
#47
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News about Shenzhen Airlines joining Star and a very interesting part about Air India... Air India will only allowed to join if the Indian Government let a second airline (Jet?) join the alliance. Star has stated that it will be both airlines or none...
http://www.centreforaviation.com/new...rn-china/page1
http://www.centreforaviation.com/new...rn-china/page1
Jul 7, 2011, 2:59 am
#48
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Jul 7, 2011, 3:04 am
#49
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Jul 7, 2011, 3:06 am
#50
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Jul 7, 2011, 3:13 am
#51
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I think that the GoI believe that *A membership will secure AI's future, but if *A fliers have the option of a second Indian carrier AI might not get the same level of support. ( but this is just a guess on my part, it could be a completely different reason)
Jul 7, 2011, 3:19 am
#52
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AI will have to get privatized IMHO to turn itself around to profitability. I was reading that they have some 600 employees per plane compared to the Industry average of 150.
Jul 7, 2011, 8:00 am
#53
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I dont see why they wouldnt, afterall you cant really insist just one airline can join. Look for example at the US where until UA and Co merged there were three US based airlines in *A. At the end of the day if Jet and AI were in it would only be of greater benefit to us.
Jul 7, 2011, 4:48 pm
#54
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News about Shenzhen Airlines joining Star and a very interesting part about Air India... Air India will only allowed to join if the Indian Government let a second airline (Jet?) join the alliance. Star has stated that it will be both airlines or none...
http://www.centreforaviation.com/new...rn-china/page1
http://www.centreforaviation.com/new...rn-china/page1
Unless the Indian Government decides to play hardball and says, fine, *A won't have any Indian members.
We are in for a renewed round of armored negotiations between German and Indian governments, mr. Albrecht is just the lonely soldier with a tin rifle sent by the masters in Cologne to open the way
Jul 7, 2011, 5:08 pm
#55
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Which is more like imo, just for the simple fact that it is not very smart to publicly pressure the GoI.It might also be a very easy escape for AI and GoI if AI doesnt gets it act toghter by the july 31th deadline, they can just say that they wont bend for the pressure from *alliance.Not a very smart move by *alliance if you ask me, they may end up with no member from India at all plus LH & co can forget about extra frequecies plus de A380 slot.I mean just look at the whole EK and Canadian goverment thing, not smart at all from Mr Aalbrecht
Jul 7, 2011, 6:16 pm
#56
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Yeah, I agree. LH needs Indian routes far more than any Indian carrier needs German routes.
Jul 7, 2011, 11:16 pm
#57
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I dont see why they wouldnt, afterall you cant really insist just one airline can join. Look for example at the US where until UA and Co merged there were three US based airlines in *A. At the end of the day if Jet and AI were in it would only be of greater benefit to us.
Jul 7, 2011, 11:24 pm
#58
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News about Shenzhen Airlines joining Star and a very interesting part about Air India... Air India will only allowed to join if the Indian Government let a second airline (Jet?) join the alliance. Star has stated that it will be both airlines or none...
http://www.centreforaviation.com/new...rn-china/page1
http://www.centreforaviation.com/new...rn-china/page1
I don't think UA, the other big member of the alliance is as interested in Indian market as LH is, definitely not in Germany-India market.
He thinks he has AI by the balls, which might be true.
The good news, for those who hate AI, id that they might get their wish of AI not being allowed to join *alliance!
What if Mr Albrecht's hard ball bounces back and hits him on his face with none of the Indian airlines being allowed to join the alliance and reduced LH frequencies? Germany-India market important for Lufthansa, but it is not so for an Indian carrier.
Last edited by Yaatri; Jul 7, 2011 at 11:49 pm
Jul 8, 2011, 12:42 am
#59
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why Govt highhandedness on Airline alliances
I had this question from the beginning the discussion about *A & AI. some one help me to understand the nexus...
What is GoI's role in determining the alliance of airlines?.
If I understand correctly, Airline alliances are commercial / operational venture and almost like airlines entering into Code-Sharing / Interlining agreements with other airlines. Every alliance and airlines should be allowed to pickup their partners based on their preferences and merits.
I acknowledge that GoI thinks that *A may help AI to survive and has control on the frequencies / Landing slots for LH or other airlines - which lead to the whole bargaining business.
but it fails to catch my amusement that we are advocating a free economy and other things when comes to US holding the H1 visas but back home we (GoI) are as protective as others.
What is GoI's role in determining the alliance of airlines?.
If I understand correctly, Airline alliances are commercial / operational venture and almost like airlines entering into Code-Sharing / Interlining agreements with other airlines. Every alliance and airlines should be allowed to pickup their partners based on their preferences and merits.
I acknowledge that GoI thinks that *A may help AI to survive and has control on the frequencies / Landing slots for LH or other airlines - which lead to the whole bargaining business.
but it fails to catch my amusement that we are advocating a free economy and other things when comes to US holding the H1 visas but back home we (GoI) are as protective as others.
Jul 8, 2011, 2:37 am
#60
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Join Date: Nov 2003
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I had this question from the beginning the discussion about *A & AI. some one help me to understand the nexus...
What is GoI's role in determining the alliance of airlines?.
If I understand correctly, Airline alliances are commercial / operational venture and almost like airlines entering into Code-Sharing / Interlining agreements with other airlines. Every alliance and airlines should be allowed to pickup their partners based on their preferences and merits.
I acknowledge that GoI thinks that *A may help AI to survive and has control on the frequencies / Landing slots for LH or other airlines - which lead to the whole bargaining business.
but it fails to catch my amusement that we are advocating a free economy and other things when comes to US holding the H1 visas but back home we (GoI) are as protective as others.
What is GoI's role in determining the alliance of airlines?.
If I understand correctly, Airline alliances are commercial / operational venture and almost like airlines entering into Code-Sharing / Interlining agreements with other airlines. Every alliance and airlines should be allowed to pickup their partners based on their preferences and merits.
I acknowledge that GoI thinks that *A may help AI to survive and has control on the frequencies / Landing slots for LH or other airlines - which lead to the whole bargaining business.
but it fails to catch my amusement that we are advocating a free economy and other things when comes to US holding the H1 visas but back home we (GoI) are as protective as others.
Until end of the month communication lines between Delhi, Berlin and Cologne will become seriously overheated , not because the hot weather...I would not be surprised if EK will end out finally as the winner in this saga.