 "AI to join Star Alliance this summer, will IndiGo, SpiceJet be next ?")
**New Delhi:**Will India become the first market where global airline grouping Star Alliance looks to partner a low cost carrier (LCC)? This prestigious grouping has already decided to take Air India into its fold after an earlier failed attempt and makes no bones about wanting a second airline from India to also join in. CEO Mark F Schwab made it clear that the new full service airline, being set up by Tata Sons and Singapore Airlines, is not an obvious choice for the Alliance.
AI should get integrated into the alliance by the summer of 2014 and then, the field will be open for LCCs like IndiGo, SpiceJet to woo Star Alliance. Will they? More importantly, will Star Alliance want its first ever LCC member from India? This alliance comprises 28 of the world’s powerful airlines like Singapore Airlines, Air Canada and Lufthansa and has no LCC member till now. Through the alliance, AI will get enhanced connectivity and greater passenger revenue besides opportunity to code share with big global airlines. Schwab spoke at length on several issues in a chat with journalists last night. Excerpts:
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On second airline from India:
We think there is room for two carriers from India but right now, we are not having a discussion with anyone. India is very important market, the fifth largest aviation market in the world and right now, we are focussed on getting AI to join. Our members are very keen to gain entry here.
On Tata-SIA being the only other full service carrier
Tata-SIA is not the obvious, natural choice for us. It is not the only choice. There are many good, strong carriers in India.
Impact Shorts
More ShortsOn how LCCs fit in with Star Alliance philosophy
There are certain geographies in the world where network connection is needed and full service airlines are not present. Star Alliance offers worldwide service to frequent business flyers in over 1300 cities. It is aimed at premium flyers with prirority baggage and checkin facilities, frequent flyer programmes etc. We are looking for basics in any new airline which business flyers look for. And LCCs may be the answer in some geographies. They are now changing, beginning to offer the premium services we need for flyers
On taking in an LCC from India
We are not talking to anyone as of now. When searching for an airline, we look for a strong home carriers which offers a good domestic presence and and overseas network, an airline which offers a hub and spoke model. AI fitted the bill since it offers over 63 destinations
On why Star Alliance invited AI now, was privatisation talk a trigger?
We have been watching AI’s performance. Its on-time performance and service standards have improved, merger of erstwhile IA and AI completed, fleet renewal commenced. Taking in AI was not a sudden decision, we have been studying the airline for 30 months. Besides, key Indian airports have new infrastructure which would facilitate operations of our member airlines. Privatisation of AI is not a factor in our decision. We have a lot of member airlines which are partially or fully owned by their respective Governments
On when AI will get intergrated
Mine is the third Star Alliance team in as many weeks to come to India. We are working hard and integration should be complete by summer this year. There is no specific date though. We need to train thousands of AI frontline staff as part of integration. The AI aircraft will have to be painted will the alliance logo etc
On Jet’s existing code share with United
United will make its own decision on that. Also, existing alliancemembershave no compulsion on code shares and there is no prohibition to codeshare with airline outside the alliance
On benefits of joining Star Alliance, besides connectivity
Joint purchasing of fuel at some key airports provides significant cost benefits to member airlines. We are also watching some airport projects so that all our members are under one roof. This will help rationalise checkin counters, lounges etc.
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