Air India’s stalled plan to get into the Star Alliance of airlines worldwide may be revived. “Both we and Star have decided to meet and discuss of our suspension, even when we had fulfilled all the 87 criteria required to join the alliance,” said a senior AI official, who did not want to be identified. No decision has been taken on the date but it will be soon.
Star, in an email reply to Business Standard, had also said the membership issue could be revived. “If both parties agree to resume the membership process at a future point in time, it can be done,” the reply said.
Entering the alliance was an important component of AI’s turnaround plan, as that would have ensured fixed revenue for the airline. Formed in 1997, Star is a consortium of 27 airlines, including Lufthansa, Air Canada, Singapore Airlines, Thai Airways and Swiss.
Its members together have about 4,000 aircraft that connect 1,160 airports in 181 countries, through 21,200 daily flights.
AI is asking Star the reason for keeping their joining on hold. “AI had met all the criteria. Any decision on taking it forward would be taken only after the Alliance’s reply,” said a senior civil aviation ministry official, who did not want to be identified.
AI had also paid ¤10 million (Rs 55 crore) as joining fee to Star and has asked for the money to be returned. And, for compensation in return for investments made (about $5-10 mn) to join the alliance.
“The alliance will have to give the money back to Air India. They may say that the money was used in mentoring AI in joining the alliance and various other things but what is the point of all that when the airline did not join the alliance?” said the ministry official.