Wednesday, 1 August 2012

Govt to take up Jet's request for Star membership post AI decision

Air India had earlier opposed Jet Airways? proposed entry into the alliance

Naresh Goyal-promoted Jet Airways has to wait for a while before the Ministry of Civil Aviation takes a decision on its application to join the Star Alliance. The government wants the alliance, comprising 27 airlines across the globe, to decide on Air India’s membership before considering other applications.
Last year, Star Alliance had snubbed Air India. Despite the process of admission being in the final stages, the airline’s membership was put on hold because it did not meet certain conditions.
A senior civil aviation ministry official said: “The ministry will consider Jet Airways’ request to join the Star Alliance only after there is some conclusive decision on Air India’s membership…. The alliance should clarify about Air India’s membership, or the airline could withdraw its request. Only then would Jet’s case be taken forward.”
BIRDS OF A FEATHER
Star Alliance
Founded
May 14, 1997
Founding airlines
Air Canada, Lufthansa, Scandinavian
Airlines, Thai Airways, United Airlines
Full members
27
 Destination airports
1,356
Connecting countries
193
Annual passengers
678.5 million
Benefits
  • Code sharing between two airlines (seamless travel for passengers). Convenient branding, facilitating travellers making inter-airline codeshare connections within countries
  • Redeem miles: Faster mileage rewards by earning miles for a single account on several different carriers
  • A wider range of airport lounges shared with alliance members
Competitor passenger alliance
  • SkyTeam, Oneworld

Lufthansa, the mentor airlines in Star alliance for Air India, has maintained more than one airline from a country could become a member of the alliance, as was the case with airlines from China, Africa and Brazil.
Air India had earlier opposed Jet Airways’ proposed entry into the alliance, alleging Lufthansa did not favour the state-owned airline, which the German airline denied.
An aviation analyst said, “If Jet Airways becomes a member of Star Alliance before Air India, it is likely to negatively impact the market share of Air India on international routes.” An email sent to Jet airways and Star Alliance remained unanswered.
Before Air India’s application was put on hold, it had paid €10 million (about Rs 69 crore) since May 2008 to Star Alliance, as part of the joining fee. In August 2011, former aviation minister Vayalar Ravi had told Parliament Star had imposed new conditions on Air India, and these were unacceptable.
Star Alliance is the largest of the three airline alliances, the other two being SkyTeam and Oneworld. Star Alliance includes Deutsche Lufthansa AG, Air Canada, Singapore Airlines and Thai Airways International PCL. A membership in the group ensures shared benefits to members and seamless travel to passengers. Facilities for Star Alliance member airlines are located close to each other at airports. Common airport facilities, coordinated schedules and a range of new technologies are also available to member airlines.

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