Air India and the Star Alliance (Part II)
#61
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I am a little confused. According to a AI captain who I was playing a round of Golf with last week AI has sold all of its profitable International slots to other airlines and they will do again in the future. If say they argue with *A and then refuse to enter if Jet enters too then they only stand to loose out. They will get their slots back at the next renewal date but these politicians are so hungry that they will again sell the routes to LH and other airlines.
The problem is that these so called Politicians come in for 4 years and strive to make as much of a killing as possible. So who ever the aviation minister is right now, no matter how his stand on *A letting in a second entrant and blocking their routes is. He can't do anything when his term expires in a couple of years and the next minister wants to make his crores on the side takes over.
The problem is that these so called Politicians come in for 4 years and strive to make as much of a killing as possible. So who ever the aviation minister is right now, no matter how his stand on *A letting in a second entrant and blocking their routes is. He can't do anything when his term expires in a couple of years and the next minister wants to make his crores on the side takes over.
#62
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They already have a lot in inbound international traffic to India - right? LH/LX/TK/OS/CO/SQ/TG/NH/OZ etc.
Only the 'domestic traffic' piece is missing. If *A can survive without airlines supporting domestic traffic in Russia (oneWorld has S7, ScaryTeam has SU) or Mexico (ScaryTeam has AM), they will probable survive also in India I had a couple of domestic flights earlier this year - would it be nice a *A airline, I could use? Certainly. Was it the end of the world? No - I used IT and credited these flights to my DL FF card (which I almost forgot I hold).
Only the 'domestic traffic' piece is missing. If *A can survive without airlines supporting domestic traffic in Russia (oneWorld has S7, ScaryTeam has SU) or Mexico (ScaryTeam has AM), they will probable survive also in India I had a couple of domestic flights earlier this year - would it be nice a *A airline, I could use? Certainly. Was it the end of the world? No - I used IT and credited these flights to my DL FF card (which I almost forgot I hold).
#63
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Competition for one thing springs to mind hence my comment you cant really insist unless of course you want to operate in a monopolistic anti consumer manner in which case then you can.
Last edited by rajsbasi; Jul 8, 2011 at 7:43 am Reason: spelling
#64
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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.
If anything, GoI, in my opinion, is right about questioning and resisting more than one major airline joining an alliance, the strongest one at.. It's Govt's job to ensure fair competition and preserves choices for consumers. There is risk of reduced competition when more than one major airline belongs to one alliance.
#65
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Only the 'domestic traffic' piece is missing. If *A can survive without airlines supporting domestic traffic in Russia (oneWorld has S7, ScaryTeam has SU) or Mexico (ScaryTeam has AM), they will probable survive also in India I had a couple of domestic flights earlier this year - would it be nice a *A airline, I could use? Certainly. Was it the end of the world? No - I used IT and credited these flights to my DL FF card (which I almost forgot I hold).
LH doesn't care about domestic Indian traffic, nor does *. The only *alliance airline with interest in traffic to and from India is LH.
For some one who fails to grasp who the main contenders in the fight, you put too many words which don't address the issue.
Last edited by Yaatri; Jul 8, 2011 at 8:46 am
#66
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It's not in the interest of consumers to have one alliance dominate the market. If two of the three majors join an alliance, it will be very difficult for a new Indian entrant deciding to enter international market to survive. On this issue, I am with GoI. @:-)
#67
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It is so trannsparaent, that your idea of competition is serving your interests. It is so transparent. I have noticed time and again that people who complaint about AI joiing *Alliance and those suggesting that both 9W and join AI are Indian or India based flyers of Star Alliance airlines. No one among flyers and LH among airlines cares about dominating India-EU/MA market.
I must give it to you that you can spell the word right.
Competition is hindered by the Govt owning and running AI, not by questioninng whether two major Indian airlines should join one alliance.
You think it's OK for German Gov t to promote LH, not for GoI to promote AI?
It's about time people stopped taking cue from EUROMAN
Last edited by Yaatri; Jul 8, 2011 at 9:20 am
#68
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accession to * by Air India and Air China has been instigated by LH, through the good offices and negotiations of German government. This is a very convenient way for them to bypass obstacles and regulations, and come out always with clean hands. In this case however I think they underestimated the high interests GoI has in Air India, therefore I agree with Yaatri that now they're taking a high-risk bet: one between Star Alliance and the Indian Government is gonna backtrack and lose face big time. If Star ends as the loser the consequences of Albrechts' chicanery could be serious for LH, because they are the most exposed to the indian market of all alliance carriers.
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.
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.
Oh what would the whiners do?
#69
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I guess I see their point on this.
#70
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I knew you would. You are a smart and a reasonable man.
To be sure, we have to understand that the GoI is doing it to protect and promote AI over other Indian airlines, but in doing so, it protects Indian aviation industry too. GoI running the airline is definitely not good and I do not support that. But as an owner of AI and as the Govt, vis-a-vis, GoI is action supports Indian industry, which is what the German Govt is doing, promoting L at the cost of the alliance.
If Germany is not faulted for promoting it's flag carrier, why should India be?
To be sure, we have to understand that the GoI is doing it to protect and promote AI over other Indian airlines, but in doing so, it protects Indian aviation industry too. GoI running the airline is definitely not good and I do not support that. But as an owner of AI and as the Govt, vis-a-vis, GoI is action supports Indian industry, which is what the German Govt is doing, promoting L at the cost of the alliance.
If Germany is not faulted for promoting it's flag carrier, why should India be?
#71
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I think a note of caution is due here. So far, on every website forum where I have I have seen this rumour reported it traces back to a single article from the Centre for Asia Pacific Aviation. While I normally find them to be a pretty reliable source I am curious why no other aviation news sources are reporting it. If Jan Albrecht really made this extraordinary comment at the ceremony for Shenzhen Airlines it seems odd that other aviation media didn't pick up on it. Do we know for sure that he actually said it at all?
#72
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I think a note of caution is due here. So far, on every website forum where I have I have seen this rumour reported it traces back to a single article from the Centre for Asia Pacific Aviation. While I normally find them to be a pretty reliable source I am curious why no other aviation news sources are reporting it. If Jan Albrecht really made this extraordinary comment at the ceremony for Shenzhen Airlines it seems odd that other aviation media didn't pick up on it. Do we know for sure that he actually said it at all?
This incident is not unique. Much news reported in non-western media, that is not of much interest to the the west is ignored, unless it's reported in mainstream western media or is of interest to them. If it had been reported in NYT, I am sure you it would find its way into other sources.
Here is one possible explanation for this phneomenon. Western media rarely pays attention to what happens in Asia unless it's Japan, or it perceives the news as a threat to them. Sometimes even events reported by a western source, such as Jane's publications, about Asia is ignored by the rest of the western media unless the event represents a threat. Since the rest of the world, not even other members of * Alliance has little interest, in whether AI is admitted, it could explain the absence. When Indian media reported ISI and terrorism nexus, it ws widely ignored by yhe western media, until the U.S. began to feel threatened by ISI.
I found it really odd that with much going on in India, not to mention the economy, corruption, Air India got Ms Timmon's attention repeatedly. It's odd, to say the least.
#74
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Countdown begins.T-17 days. Will AI make it or not? let's have a poll. Not your wish, bu your opinion. I am neuetral on both. If I were sure that AI joining *Alliance meant that Jet would join Skyteam, I would wish AI to join Star.
#75
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They will join. I am 99% sure. Just a hunch.