Air India and the Star Alliance [Pre-confirmation discussion]
Mar 28, 2014, 8:28 pm
#61
Join Date: May 2010
Location: VABB
Programs: AI-FR, 9W-JP
Posts: 723
Air India's integration process on track: Star Alliance
FE Bureau | Mumbai | Updated: Mar 28 2014, 15:20 IST
The integration process for Air India into global airline group Star Alliance is proceeding smoothly, said a senior executive of Frankfurt-based Star Alliance on Thursday.
“I can say with full confidence that the integration process (of Air India) into Star Alliance is on track and working by,” said Christian Klick, VP, Corporate Office, Star Alliance Services.
Executives of state-owned Air India had earlier told FE that the airline was expected to complete its integration into the alliance by summer – by May-June – this year.
Post its induction into the alliance, Air India will become the 29th member of Star Alliance, which is also the world's largest airline partnership with almost $200 billion in combined revenues.
Klick added that Star Alliance and India's flag carrier have agreed on a joint implementation to get several parameters like IT systems and contracts (for economic transactions) working in a specified time.
“There are a number of parameters that needs to be implemented when a new carrier like Air India come on board of Star Alliance. All these things are taking some time,” he said explaining the flag carrier's integration process.
During December 2007, Star Alliance had accepted Air India as its future member, only to halt the integration process in July 2011 citing that the airline couldn't meet some of the alliance's required parameters. “Air India joining the Alliance will complete about 30 months of hard work. Joining the alliance will enhance our brand value and provide more connectivity to our passengers,” Rohit Nandan, CMD of Air India, had told at a press conference in Delhi on January.
The state-owned carrier had also announced its plans to retrain over 8,000 front-line personnel, as a part of the process, over the next few months for a more premium customer experience that matches Star Alliance's standards.
Air India's integration into a global alliance, a first for a domestic airline, will help it boost revenues by increasing global connectivity through partner airlines. It will also be able to improve its share of business travelers by gaining access to over 1,000 Star Alliance lounges and lower fuel costs by doing bulk purchases through Star Alliance tie-ups. The country's flag carrier will also be able to fly on a network of 21,900 daily flights to 1,328 airports in 195 countries and redeem air miles on airlines such as Lufthansa, Singapore Airlines, US Airways, United Airlines and others.
This time around, post the integration of Air India, a second Indian carrier could also be inducted into the alliance. “I can't rule out te fact that we could induct a second Indian airline in future. But, I can't speculate at the moment as to how this will pan out,” he said, adding, “Indian aviation market is huge and constantly changing. What has not changed though is that it remains one of the most important aviation market in the world.”
However, Klick said that the gourp is not in talks with IndiGo for a possible induction into the alliance putting rest to speculation about that the market leaders could get a coveted berth on the alliance.
Klick though indicated that Star Alliance – which consists of only full-service carriers – could in future induct low cost carriers from across the world. “There is no scope for Low cost Carriers (LCCs) to join Star alliance now. But, we can't rule this out in future and currently we are discussing on this issue,” he added.
FE Bureau | Mumbai | Updated: Mar 28 2014, 15:20 IST
The integration process for Air India into global airline group Star Alliance is proceeding smoothly, said a senior executive of Frankfurt-based Star Alliance on Thursday.
“I can say with full confidence that the integration process (of Air India) into Star Alliance is on track and working by,” said Christian Klick, VP, Corporate Office, Star Alliance Services.
Executives of state-owned Air India had earlier told FE that the airline was expected to complete its integration into the alliance by summer – by May-June – this year.
Post its induction into the alliance, Air India will become the 29th member of Star Alliance, which is also the world's largest airline partnership with almost $200 billion in combined revenues.
Klick added that Star Alliance and India's flag carrier have agreed on a joint implementation to get several parameters like IT systems and contracts (for economic transactions) working in a specified time.
“There are a number of parameters that needs to be implemented when a new carrier like Air India come on board of Star Alliance. All these things are taking some time,” he said explaining the flag carrier's integration process.
During December 2007, Star Alliance had accepted Air India as its future member, only to halt the integration process in July 2011 citing that the airline couldn't meet some of the alliance's required parameters. “Air India joining the Alliance will complete about 30 months of hard work. Joining the alliance will enhance our brand value and provide more connectivity to our passengers,” Rohit Nandan, CMD of Air India, had told at a press conference in Delhi on January.
The state-owned carrier had also announced its plans to retrain over 8,000 front-line personnel, as a part of the process, over the next few months for a more premium customer experience that matches Star Alliance's standards.
Air India's integration into a global alliance, a first for a domestic airline, will help it boost revenues by increasing global connectivity through partner airlines. It will also be able to improve its share of business travelers by gaining access to over 1,000 Star Alliance lounges and lower fuel costs by doing bulk purchases through Star Alliance tie-ups. The country's flag carrier will also be able to fly on a network of 21,900 daily flights to 1,328 airports in 195 countries and redeem air miles on airlines such as Lufthansa, Singapore Airlines, US Airways, United Airlines and others.
This time around, post the integration of Air India, a second Indian carrier could also be inducted into the alliance. “I can't rule out te fact that we could induct a second Indian airline in future. But, I can't speculate at the moment as to how this will pan out,” he said, adding, “Indian aviation market is huge and constantly changing. What has not changed though is that it remains one of the most important aviation market in the world.”
However, Klick said that the gourp is not in talks with IndiGo for a possible induction into the alliance putting rest to speculation about that the market leaders could get a coveted berth on the alliance.
Klick though indicated that Star Alliance – which consists of only full-service carriers – could in future induct low cost carriers from across the world. “There is no scope for Low cost Carriers (LCCs) to join Star alliance now. But, we can't rule this out in future and currently we are discussing on this issue,” he added.
Mar 29, 2014, 12:12 pm
#62
Join Date: Oct 2007
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Posts: 1,715
Last time around they were blocked the day they were supposed to join... I won't believe it till I actually get my *S FFP card from AI.
Apr 14, 2014, 4:44 am
#63
Join Date: Jan 2011
Posts: 278
Looks like they're going ahead with expansion: http://www.business-standard.com/art...1200900_1.html
Apr 15, 2014, 1:11 pm
#64
Join Date: Oct 2007
Location: LONDON
Programs: CX DM, BA G4L, QR PLT, EK PLT, Hyatt CourtesyC, HH DM, SQ PPS, BonvoyTit, UK, VS, UA, DL, AA
Posts: 1,715
Looks like they're going ahead with expansion: http://www.business-standard.com/art...1200900_1.html
May 1, 2014, 1:33 am
#66
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Join Date: Apr 2009
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Looks like Air India is all set to join *A in July 2014. Source
May 1, 2014, 3:43 am
#67
Join Date: May 2013
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Posts: 383
May 1, 2014, 5:47 am
#68
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May 1, 2014, 6:28 am
#69
Join Date: Jan 2014
Posts: 136
Should I book or not?
I have plans to to go to India this year end. Haven't book any award tix. I see a direct flight to India. Should I wait until July for this merger to happen or go ahead with my usual booking? Please advise.
May 1, 2014, 9:46 am
#70
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Posts: 31,475
May 1, 2014, 12:39 pm
#71
Join Date: Oct 2010
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Actually, the plan at the moment is the end of June.
by July being the keyword.
by July being the keyword.
May 1, 2014, 9:10 pm
#72
Join Date: Aug 2005
Posts: 137
:-:
Keyser be careful what you post. I asked this same question almost 3 years ago and was given grief by those fortunate enough to be born without a sense of humour.
What year?
Thankfully those post were deleted.
Keyser be careful what you post. I asked this same question almost 3 years ago and was given grief by those fortunate enough to be born without a sense of humour.
What year?
Thankfully those post were deleted.
May 2, 2014, 12:23 am
#73
Join Date: May 2010
Location: VABB
Programs: AI-FR, 9W-JP
Posts: 723
A detailed article that gives update on the current status:
SOURCE
Thu, May 01 2014. 11 48 PM IST
Star Alliance a strong proposition for Air India frequent flyers: Mark Schwab
Air India passengers will get to redeem air miles on Deutsche Lufthansa, Air China, Singapore Airlines, Air Canada, Turkish Airlines and Thai Airways
Star Alliance’s CEO Mark Schwab is in Delhi to joining progress of Air India with the biggest global grouping of airlines. State-owned airline Air India Ltd, with a fleet of 123 aircraft, is all set to join Star Alliance, the world’s biggest airline grouping, in July. Joining Star Alliance will allow Air India passengers to use Star’s facilities such as airport lounges, fly on a network of 21,900 daily flights to 1,269 cities in 195 countries, and redeem air miles on 26 airlines such as Deutsche Lufthansa AG, Singapore Airlines Ltd, Air China Ltd, Air Canada, Turkish Airlines and Thai Airways. Star Alliance’s chief executive officer (CEO) Mark Schwab, on a visit to India to review Air India’s preparedness for joining the club, explains in an interview what will change on the ground for passengers. Edited excerpts:
Assume that I am an Air India flyer. What will change for me from July?
If you are a frequent flyer, if you are a silver or gold member of Air India’s frequent flier programme, Flying Returns, you now have the world available to you to earn miles and to use your miles—a very strong proposition. We fly to 1,269 cities around the world and it’s a little hard to imagine what airport you might be going to that we can’t get you there... (you will gain access to) more than 1,000 (airport) lounges around the world....for any customer in any given day, a one-stop check-in to the entire world. We very sincerely mean that. If you start your journey in Chennai, come to Delhi, go to Munich, continue on to Lisbon, that journey could take you on three different airlines and four different stops. You are going to get all your boarding passes, your baggage tags (in Chennai) all the way to (your final) destination and you can be confident that it works all the way. Air India frequent flyers will see a strong proposition in Star Alliance. If you are the occasional user of Air India, it may be less obvious to you. In turn, the very comprehensive network of Air India within India is a strong attraction.
You are in Delhi to review the joining process...
The reason we are here in Delhi today is that we have been meeting on a regular basis with the leadership team of Air India to review week-by-week their progress and their integration in Star Alliance. The very good news is that excellent progress has been made. They have completed more than two-thirds of the requirements to have them join Star. We still have one-third of the things to complete, but we see a path to completion over the next few weeks—end of May. Our CEOs get together in London on the occasion of the new Star Alliance terminal at London Heathrow on 23 June where we expect an endorsement vote to be taken up on Air India joining Star. And we are just beginning to coordinate with Air India what is the best date for us to have them. I would expect sometime in the month of july.
What kind of challenges and opportunities are you working on?
All in all, part of the customer improvement plan that (Air India chairman) Rohit Nandan talked about is to help the management team to focus on areas of opportunity. They have in conjunction with the consultant—Lufthansa Consulting—put together a comprehensive plan to help them first determine where the gaps are and where the opportunities for improvement and timelines associated with them are so that they can have a very disciplined way of going about it.
What is the outer limit of the plan?
It’s a relative chart. As other carriers get better, they have to get better themselves. Improving airport infrastructure changes dramatically the customer experience that helps not only them, but the rest (as well). Punctuality is a big driver of satisfaction...when one flies on time, the experience is better for the customer. It sounds unusual, but the food tastes better when the flight is on time. It has its overall impact. And the Air India fleet renewal, which they are going through, bringing new products, fresh new airplanes, is also being very well perceived... Improving in-flight systems is an opportunity...
Nearly 37 million international passengers travel to and from India a year. Air India and Jet Airways (India) Ltd have a 33% share of this international traffic, while 17% is with West Asian airlines such as Emirates, Qatar Airways, Etihad Airways and Air Arabia. Star Alliance has a 13% share of international traffic, while rivals OneWorld and SkyTeam have 8% each. What do you expect this relationship to do to your share?
So one and two together is very good. Air India and Star Alliance would be more than double then, more than 26%.
Tata Sons-Singapore Airlines will hopefully be running this year. Would Singapore Airlines, which is a Star member, not cannibalize Air India traffic?
It’s not yet clear how fast and exactly what they look like... It’s still a work in progress. And I know that Air India and Singapore Airlines have talked to each other, so it’s a better question for Nandan.
Star Alliance a strong proposition for Air India frequent flyers: Mark Schwab
Air India passengers will get to redeem air miles on Deutsche Lufthansa, Air China, Singapore Airlines, Air Canada, Turkish Airlines and Thai Airways
Star Alliance’s CEO Mark Schwab is in Delhi to joining progress of Air India with the biggest global grouping of airlines. State-owned airline Air India Ltd, with a fleet of 123 aircraft, is all set to join Star Alliance, the world’s biggest airline grouping, in July. Joining Star Alliance will allow Air India passengers to use Star’s facilities such as airport lounges, fly on a network of 21,900 daily flights to 1,269 cities in 195 countries, and redeem air miles on 26 airlines such as Deutsche Lufthansa AG, Singapore Airlines Ltd, Air China Ltd, Air Canada, Turkish Airlines and Thai Airways. Star Alliance’s chief executive officer (CEO) Mark Schwab, on a visit to India to review Air India’s preparedness for joining the club, explains in an interview what will change on the ground for passengers. Edited excerpts:
Assume that I am an Air India flyer. What will change for me from July?
If you are a frequent flyer, if you are a silver or gold member of Air India’s frequent flier programme, Flying Returns, you now have the world available to you to earn miles and to use your miles—a very strong proposition. We fly to 1,269 cities around the world and it’s a little hard to imagine what airport you might be going to that we can’t get you there... (you will gain access to) more than 1,000 (airport) lounges around the world....for any customer in any given day, a one-stop check-in to the entire world. We very sincerely mean that. If you start your journey in Chennai, come to Delhi, go to Munich, continue on to Lisbon, that journey could take you on three different airlines and four different stops. You are going to get all your boarding passes, your baggage tags (in Chennai) all the way to (your final) destination and you can be confident that it works all the way. Air India frequent flyers will see a strong proposition in Star Alliance. If you are the occasional user of Air India, it may be less obvious to you. In turn, the very comprehensive network of Air India within India is a strong attraction.
You are in Delhi to review the joining process...
The reason we are here in Delhi today is that we have been meeting on a regular basis with the leadership team of Air India to review week-by-week their progress and their integration in Star Alliance. The very good news is that excellent progress has been made. They have completed more than two-thirds of the requirements to have them join Star. We still have one-third of the things to complete, but we see a path to completion over the next few weeks—end of May. Our CEOs get together in London on the occasion of the new Star Alliance terminal at London Heathrow on 23 June where we expect an endorsement vote to be taken up on Air India joining Star. And we are just beginning to coordinate with Air India what is the best date for us to have them. I would expect sometime in the month of july.
What kind of challenges and opportunities are you working on?
All in all, part of the customer improvement plan that (Air India chairman) Rohit Nandan talked about is to help the management team to focus on areas of opportunity. They have in conjunction with the consultant—Lufthansa Consulting—put together a comprehensive plan to help them first determine where the gaps are and where the opportunities for improvement and timelines associated with them are so that they can have a very disciplined way of going about it.
What is the outer limit of the plan?
It’s a relative chart. As other carriers get better, they have to get better themselves. Improving airport infrastructure changes dramatically the customer experience that helps not only them, but the rest (as well). Punctuality is a big driver of satisfaction...when one flies on time, the experience is better for the customer. It sounds unusual, but the food tastes better when the flight is on time. It has its overall impact. And the Air India fleet renewal, which they are going through, bringing new products, fresh new airplanes, is also being very well perceived... Improving in-flight systems is an opportunity...
Nearly 37 million international passengers travel to and from India a year. Air India and Jet Airways (India) Ltd have a 33% share of this international traffic, while 17% is with West Asian airlines such as Emirates, Qatar Airways, Etihad Airways and Air Arabia. Star Alliance has a 13% share of international traffic, while rivals OneWorld and SkyTeam have 8% each. What do you expect this relationship to do to your share?
So one and two together is very good. Air India and Star Alliance would be more than double then, more than 26%.
Tata Sons-Singapore Airlines will hopefully be running this year. Would Singapore Airlines, which is a Star member, not cannibalize Air India traffic?
It’s not yet clear how fast and exactly what they look like... It’s still a work in progress. And I know that Air India and Singapore Airlines have talked to each other, so it’s a better question for Nandan.
May 4, 2014, 1:48 pm
#74
FlyerTalk Evangelist
Join Date: Apr 2009
Location: India
Programs: Bonvoy Lifetime Titanium, IHG Plat, HH Gold, Trident Plat, DL Diamond, AI Maharajah
Posts: 29,682
:-:
Keyser be careful what you post. I asked this same question almost 3 years ago and was given grief by those fortunate enough to be born without a sense of humour.
What year?
Thankfully those post were deleted.
Keyser be careful what you post. I asked this same question almost 3 years ago and was given grief by those fortunate enough to be born without a sense of humour.
What year?
Thankfully those post were deleted.
May 5, 2014, 8:57 pm
#75
Join Date: Jul 2012
Location: Delhi, India
Programs: Air India Silver Edge, Jet Airways Silver
Posts: 271
What is happening is that the capacity is being right-sized across the fleet in all Premium classes including J. WHich is why the number of J seats on domestic A319's has been pared down from 12/14 to 8. Some A321's have 20 J seats, but most now have reduced to 12. A320's have between 8/12/14 and ZERO J seats.
The 787-8 was always supposed to be a "growth replacement" for their A310 fleet so a First class was never on the cards. I doubt we will ever see them go west of MAN- EVER! All speculation of them operating 787's to the US is pure fantasy! So a J cabin with 18 seats is optimal for these A310 routes! The US routes will be exclusively operated with 77W's and will continue to have first class.
There is some sub-clause somewhere in the Star Alliance membership form that airlines of a certain tier are SUPPOSED to have First class: and AI aspires to be in that tier of membership. So a 1st class will be on offer. Infact I have been told that a total upgrade of their F and J class product for US/Europe is on the cards along with a new commercial team to handle that.