The Hindu Business Line : AI to join global airline alliance in Dec

Flying high
Joining an alliance will help AI increase passenger carriage by 5-6 pc
AI's move comes even as a number of airlines from China are joining such alliances

New Delhi , Nov. 23

In a move that will help Air India expand its global footprint, the airline is all set to join a global airline alliance next month, the Chairman and Managing Director, Mr V. Thulasidas, has said.

"A formal announcement is expected and will be made before December 31. It is likely to take up to 18 months for the formal joining process to be completed. Joining an alliance will help us increase our passenger carriage by 5-6 per cent, apart from providing greater reach across the globe for our passengers.

"It will also lead to cost benefits for us. However, due to the non-disclosure clause we cannot reveal the name of the alliance that we will be joining," Mr Thulasidas said, on the sidelines of the two-day India-EU Aviation summit.

He felt that it would be wrong to speculate on the airline joining the Star Alliance only because there was an existing strong relationship with Lufthansa, which was a leading member of the global alliance.

Air India's move of joining a global airline alliance comes even as a number of airlines from China are joining such alliances. Earlier this year China Southern Airline, the largest airline of China started the procedure for joining the Star Alliance.

Air India, which had earlier been in talks with OneWorld and SkyTeam global alliance, has for some time been in talks with Star Alliance, which includes Thai Airways, Air Canada, Singapore Airline, United Airlines and South African Airways. The Alliance carries 425 million passengers annually, has 15,500 daily departures, serves 152 countries and 842 airports.

"Initially, only Air India will be joining the Alliance. But as the merger (of Air India and Indian) is completed in the new merged entity will come on board the alliance," Mr Thulasidas said, when asked what impact the proposed merger of Air India and Indian would have on the airline joining an global aviation alliance.