Jet and the Star Alliance. Will they / Won't they?
#31
Join Date: Mar 2011
Location: HYD/CHI
Posts: 793
Anti-trust-/competition-undermining concerns. These kind of concerns (about consumer-unfriendly outcomes) and needs for government approval are not unique to India. Even US and European carriers have sought and attained such approval from their own governments so as to join up in an alliance.
#32
Suspended
Join Date: Jan 2002
Posts: 22,778
In addition to what GUWonder said, I think there's another reason. It's not so much that 9W is asking the govt for permission, but rather getting their blessing. The idea is that AI really wanted to join *A, but was not able to. So 9W wants to make sure that if they do join *A, the govt/AI will not get upset and retaliate against them.
Also, isn't foreign trade, along with defence, foreign affairs, is under reserved list? Or is it concurrent?
#33
Join Date: Oct 2010
Location: SEA/ORD/ADB
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GoI has told *A that it must either accept or reject AI before it does anything with 9W.
http://www.business-standard.com/ind...cision/482113/
This is great news - it's hopefully the start of the alliance situation getting sorted out in India. No more of this "application suspended, now lets twiddle our thumbs" crap...
http://www.business-standard.com/ind...cision/482113/
This is great news - it's hopefully the start of the alliance situation getting sorted out in India. No more of this "application suspended, now lets twiddle our thumbs" crap...
#34
Join Date: Nov 2006
Location: cbr
Programs: QF WP (OWE) / LTG (LT OWS) | Hyatt Globalist
Posts: 4,972
GoI has told *A that it must either accept or reject AI before it does anything with 9W.
http://www.business-standard.com/ind...cision/482113/
This is great news - it's hopefully the start of the alliance situation getting sorted out in India. No more of this "application suspended, now lets twiddle our thumbs" crap...
http://www.business-standard.com/ind...cision/482113/
This is great news - it's hopefully the start of the alliance situation getting sorted out in India. No more of this "application suspended, now lets twiddle our thumbs" crap...
#35
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Location: SEA/ORD/ADB
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#37
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ST might be the best fit. All things considered.
#38
Join Date: Oct 2010
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Er, it works the other way round. What alliance AI wants to join is secondary to which member airline of a particular alliance will sponsor AIs entry. After this clusterflap that was AI's intended membership of *A, I don't see any OW or ST member stepping up to be the sponsor.
ST might be the best fit. All things considered.
ST might be the best fit. All things considered.
Mind you, that doesn't excuse the fact that AI took far longer than it should have to get itself ready, but if AI tried to join an alliance today, it would be a far easier (and quicker) process.
I'm sure both OW and ST would both be happy to have AI when the alternative is to be locked out of the Indian market.
#39
Join Date: Nov 2006
Location: cbr
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CX/KA and BA together fly to BOM, DEL, MAA, HYD, BLR.
If QF/EK alliance goes ahead, it'll be even more (atleast on the QF Code); arguably higher "one stop" reach into India than what AI could hope to provide.
Other airlines in OW have individual tie-ups with 9W and IT.
Not sure where you come up with "locked out of the Indian Market" from, or what exactly you mean by it. Nice rhetoric though. Indian aviation does seem to inflate its importance to the "alliances" than what the "alliances" think its worth.
#40
Join Date: Oct 2010
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"Locked Out" ?
CX/KA and BA together fly to BOM, DEL, MAA, HYD, BLR.
If QF/EK alliance goes ahead, it'll be even more (atleast on the QF Code); arguably higher "one stop" reach into India than what AI could hope to provide.
Other airlines in OW have individual tie-ups with 9W and IT.
Not sure where you come up with "locked out of the Indian Market" from, or what exactly you mean by it. Nice rhetoric though. Indian aviation does seem to inflate its importance to the "alliances" than what the "alliances" think its worth.
CX/KA and BA together fly to BOM, DEL, MAA, HYD, BLR.
If QF/EK alliance goes ahead, it'll be even more (atleast on the QF Code); arguably higher "one stop" reach into India than what AI could hope to provide.
Other airlines in OW have individual tie-ups with 9W and IT.
Not sure where you come up with "locked out of the Indian Market" from, or what exactly you mean by it. Nice rhetoric though. Indian aviation does seem to inflate its importance to the "alliances" than what the "alliances" think its worth.
However, if you'd like to use number of destinations served as a metric, I submit this:
Star Alliance serves less than 10 destinations direct from DEL.
AI serves 60+.
9W serves 40+.
BOM is similar. HYD, BLR, MAA, ATQ, PNQ and CCU have limited alliance connectivity. Airports like AMD, NAG, and (my hometown) IXE have no alliance connectivity at all.
#41
Join Date: Nov 2006
Location: cbr
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I don't really think the number of cities each alliance serves is particularly helpful at telling the importance of Indian carriers.
However, if you'd like to use number of destinations served as a metric, I submit this:
Star Alliance serves less than 10 destinations direct from DEL.
AI serves 60+.
9W serves 40+.
BOM is similar. HYD, BLR, MAA, ATQ, PNQ and CCU have limited alliance connectivity. Airports like AMD, NAG, and (my hometown) IXE have no alliance connectivity at all.
However, if you'd like to use number of destinations served as a metric, I submit this:
Star Alliance serves less than 10 destinations direct from DEL.
AI serves 60+.
9W serves 40+.
BOM is similar. HYD, BLR, MAA, ATQ, PNQ and CCU have limited alliance connectivity. Airports like AMD, NAG, and (my hometown) IXE have no alliance connectivity at all.
QED
Never mind the discussion about how any of those secondary and tertiary destinations like NAG and IXE have alliance loyal fliers as opposed to price sensitive ones. Further ignore the fact that people in PNQ would rather drive to BOM than hike out to Lohgad and run the gauntlet of delayed flights and transfer chaos.
#42
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I don't know if that generalization is fair. I know that I'd pick a connection over a 4+ hour drive any day.
#43
Join Date: Dec 2010
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- *A walked away from AI because they wanted 9W. This is a commentary on the perceived importance of AI in relation to 9W, not of Indian carriers in general.
- IXE has a large 9W following. I know many 9W Plats who live near me. FFPs certainly to matter to some people (with money).
Also, howmany is 'large 9w following' according to you? Numbers, please?
#44
Join Date: Oct 2010
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http://www.livemint.com/2011/08/0122....html?atype=tp
Two officials at the civil aviation ministry said the rejection came after the ministry didn’t agree to a demand from the alliance to give Jet Airways (India) Ltd the go-ahead to join the grouping.
“Star Alliance told us that they will draft a letter on behalf of Jet Airways which the ministry needs to sign as a no-objection certificate for Jet to also be a Star member before Star gives a green signal for Air India to join,” a top ministry official said, speaking on condition of anonymity. “This was an atrocious demand and was completely rejected.”
A second ministry official, who also did not want to be named, confirmed the demand: “They said either we take Jet and Air India or none is welcome.” The row could escalate, with the Indian authorities planning to issue an official statement, he said. “We will reply appropriately to Star. As far as we are concerned, Star can forget India,” he added.
Gerhard Girkinger, chief project manager at Star Alliance, who has been supervising the integration process with Air India, wrote to the carrier on 30 July and said that much of the work was “done”.
“I can confirm the status of the integration based on the attached spreadsheets. From my perspective, this means we are basically done although I need formal sign-off. All the other components depend on a joining date,” Girkinger wrote.
Klick did not deny the communication. “Notwithstanding the fact that Air India must have breached our confidentiality agreement with such information, I can confirm the following: The decision to accept compliance to the full set of minimum joining conditions as contractually agreed to in 2007 is not taken/confirmed by a project manager in the Star Alliance Service GmbH responsible for the implementation of a certain set of so-called components,” he said.
“Star Alliance told us that they will draft a letter on behalf of Jet Airways which the ministry needs to sign as a no-objection certificate for Jet to also be a Star member before Star gives a green signal for Air India to join,” a top ministry official said, speaking on condition of anonymity. “This was an atrocious demand and was completely rejected.”
A second ministry official, who also did not want to be named, confirmed the demand: “They said either we take Jet and Air India or none is welcome.” The row could escalate, with the Indian authorities planning to issue an official statement, he said. “We will reply appropriately to Star. As far as we are concerned, Star can forget India,” he added.
Gerhard Girkinger, chief project manager at Star Alliance, who has been supervising the integration process with Air India, wrote to the carrier on 30 July and said that much of the work was “done”.
“I can confirm the status of the integration based on the attached spreadsheets. From my perspective, this means we are basically done although I need formal sign-off. All the other components depend on a joining date,” Girkinger wrote.
Klick did not deny the communication. “Notwithstanding the fact that Air India must have breached our confidentiality agreement with such information, I can confirm the following: The decision to accept compliance to the full set of minimum joining conditions as contractually agreed to in 2007 is not taken/confirmed by a project manager in the Star Alliance Service GmbH responsible for the implementation of a certain set of so-called components,” he said.
20 may not seem like a big number, but at a small station like IXE, it's a big deal. In comparison, I only know 5 AI Golds and 0 AI Maharaja Club members in IXE... Although that may be because of the horrible treatment IC has given IXE over the years...
#45
Join Date: Feb 2004
Location: bombay
Posts: 1,408
Everything else though is an increasingly sad letdown.
Hahah! That's one of the few things I've never been accused of : restraint. That was posted in another context; I usually have other, rather choice words at the tip of my tongue.
Honestly, if there must be alliance membership, then I still think Star will work better for AI and Skyteam better for Jet.
The only ones I see locked out of the Indian market are Air India and Jet Airways. And that's because they will have ended up locking themselves out - they're halfway down that path anyway.
In any event, the idea of the Indian market is very, very far removed from the reality of it.
Really? Now a mainstream article is perfectly trustworthy?
And in any event, no. Simply going by what AI said or, worse, what a bureaucrat said is being incredibly naïve.
Star Alliance gave Air India the finger because they were fed up of waiting.
And before anyone bursts into a combination of protests, conspiracy theories, finger-pointing and naively believing all that a government official spouts out, Star's decision was perfectly justified.
Star invited Air India to join, yes, but subject to certain criteria, certainly. Which, I presume, included Air India getting their act together by a certain date or within a "reasonable" time. Neither of which AI did. Four years is unacceptable from any angle, regardless of the reason or excuse.
We don't know for sure what exactly each of those reasons these airlines had for not wanting AI anymore. I doubt it's because Air India were crap (or Jet were less crap), because that's not a new finding, and Star have their fair share of crap airlines. I suspect it's because they concluded that enough is enough.
When AI moved at such a glacial pace for alliance entry - and everything else, really - one can't blame Star members if they're worried about a future with AI. Air India's hopelessness has a rather minimal impact on the alliance now; if they were to become a member, and continued behaving the same way (a perfectly fair expectation), the impact could be significant.
Shut the damn thing down immediately and put the exchequer out of its misery.