The Hindu Business Line : Air India in talks to join Star Alliance

New Delhi, July 18 In what could be a precursor to Air India joining the Star Alliance, a 17-airline global alliance, the Indian carrier is to make a presentation to the Alliance working group on September 13 and hold a meeting with the chief executive officers of the Alliance partners on December 13.

Official sources told Business Line that the Alliance would consider several issues including the network and operational synergies, size of the Air India network and the airline’s corporate structure before taking a final dec ision on whether to include it in the global alliance.

“In addition, the Alliance would examine whether another member joining would enhance profitability, increase traffic loads, strengthen the alliance and members’ brand especially in new regions and help promote the common use of infrastructure,” sources said.

Joining the Alliance would also help the 17- member airlines offer their frequent flyer members another option for earning and burning their miles.

‘Examining norms’

Acceptance into the Alliance would help Air India further increase its network and spread.

“We have had discussions with the Alliance at various levels. At present, the airline is examining the detailed entry norms and doing a cost benefit analysis on whether the cost of joining would be worthwhile,” a senior airline official said. During the last few years, Air India and Indian have been in talks with all the three major global Alliances — Star, OneWorld and SkyTeam — to join them.

The Star Alliance, which was formed 10 years ago, includes Singapore Airlines, United Airlines, Air Canada, Thai Airways International, ANA, Swiss, Lufthansa, South African Airlines and British Midlands.

The Alliance members carried more than 405 million passengers last year and served 855 airports in 155 countries.

The combined fleet strength of the 17 airlines is 2,777 aircraft.

At present, none of three global airline alliances have a presence in India although they are in talks with various airlines.