Air India’s entry into the global airlines alliance, Star Alliance, will be delayed. This follows the airline’s application for membership of the Alliance being put on hold.
In a statement, the alliance has said that Air India has not met the minimum joining conditions, which were contractually agreed to in December 2007.
The date for fulfilling various conditions to join the alliance was July 31, 2011.
The statement, however, did not specify what conditions had not been met by the airline to join the global alliance. The statement simply says, “Following a recent review meeting of the status of Air India’s application at a meeting held between the Indian Ministry of Civil Aviation, Star Alliance CEO, Mr Jaan Albrecht, and the Air India CMD, Mr Arvind Jadav, the decision to suspend has received subsequent confirmation by the Star Alliance Executive Board.”
Air India refused to comment. Airlines sources said that they do not know when they are going to re-apply.
On the other hand, the Star Alliance CEO, Mr Jaan Albrecht, said, “With the collective decision to put the integration efforts on hold today, we aim to contribute to Air India’s flexibility to concentrate on its ongoing strategic reorientation.” He also assured that the alliance’s member carriers will continue to provide assistance to Air India, as and when required.
The alliance has indicated that this is not the end of the runway. It has said that there will be room to discuss a potential Alliance membership at a future stage, if deemed appropriate by both parties.
Experts feel that this decision would impact the Alliance more than Air India. “It would be sad for the Star Alliance as India is a key strategic market,” says CEO (South Asia) of the aviation consultancy and research firm, Centre for Asia Pacific Aviation, Mr Kapil Kaul.
Mr Kaul, however, refused to buy the theory that the current stand of the Alliance will pave the way for Jet Airways. He said, “Technically it (Jet) should be, but I do not think the Government will permit it.” At present, Jet Airways is the market leader.