Maharajas Star Alliance dream hits air pocket

Global airlines group suspends the carriers integration into its network.

Listen to this article

00:00

1x 1.5x 1.8x

In a major setback for Air India,Star Alliance the global grouping of airlines has suspended the national carriers entry bid,bringing over three years of integration efforts to a halt. Terming the decision as unacceptable,the government said the airline had met with all the entry requirements.

This is unacceptable, Civil Aviation Minister Vayalar Ravi told The Indian Express. They have played a trick, he added. Star Alliance cited the airlines failure to meet minimum joining conditions (MJC),contractually agreed to in December 2007,as the reason for suspension. The alliances claim is contested by the airline which said that the alliance had confirmed through its letter on July 30th that the airline met with all MJCs. The letter stated that only a few conditions were left which would be triggered upon the airlines entry into the network,added a source. Star Alliance said that its chief executive board,comprising of member-airlines top honchos,decided to suspend the integration.

The airline was to fulfill MJCs that included single reservation code,upgrading IT systems and creating brand book by July 31. The entry would have resulted in 8-10 per cent revenue enhancement for Air India,besides adding international depth to its network and offering seamless connectivity to passengers,said sources.

Story continues below this ad

According to government sources,Star Alliance insisted upon inclusion of a second carrier from the country. As the joining date neared,Star Alliance put two pre-conditions to Air Indias entry. First,they insisted on a government undertaking for allowing a second carrier from India to join the alliance. Second condition said that on an equal basis,permit Star Alliance to have code-share agreement with members (other Indian carriers), sources said. Both the conditions were unacceptable to the government. Star Alliance had also invited Jet Airways to join the grouping.

They cant dictate terms to the government, said Ravi and added that the ministry has not receive application from any other Indian carrier to join the alliance. Air India CMD Arvind Jadhav called the decision least expected and disappointing.

Tags:
Star Alliance

Premji said that Wipro would partner with the Government "to find a lasting solution for Bengaluru's mobility challenges".

Wipro rejects Karnataka Govt request to allow public vehicles inside Sarjapur campus

Cities7 hr ago

Wipro, a leading company in Bengaluru, has refused to allow public vehicles inside its Sarjapur campus to ease traffic congestion. However, they have agreed to finance a study to find a solution for the traffic problem. The founder, Azim Premji, believes that the issue is complex and requires expert analysis. Wipro has also committed to funding a significant portion of the study's cost.

View all shorts

Live Blog

PHOTOS