Star Alliance firm on July-end deadline for Air India
31 May 2011
New Delhi: Troubled state-owned airline, Air India, may find its restructuring plans run into further problems if it misses the final, July-end, deadline issued by Star Alliance to comply with membership requirements. Membership with Star Alliance, a network of airlines, will allow the badly struggling flag carrier to increase Air India's revenue 9 per cent to 15 per cent.
According to Markus Ruediger, media relations director at Star Alliance, there are still ''items outstanding'' on a list of about 80 requirements that Air India has to comply with. Ominously, he warned that the Alliance has ''indicated to Air India that they will have to be ready to join, by latest, end of July.''
Without mentioning Air India's shortfalls, he said Star Alliance had already made it clear that Air India had been given enough extensions. It is ''not in their interest to delay any further,'' he said.
Star Alliance had first issued an invitation to Air India to join the group of 27 airlines, which includes Lufthansa, Air China, Singapore Airlines and United Airlines, in December 2007.
Air India executives have indicated in recent months that membership with Star Alliance is a main part of the airline's turnaround plan. It is a critical part of a travellers plan as tickets are booked on the knowledge whether a carrier is part of a global network, as it allows them to earn frequent flyer miles when they travel.
Air India officials declined comment when asked about compliance related issues with Star Alliance.
