Global air alliances woo Indian carriers

Two global airline alliances, SkyTeam and OneWorld, are bullish about the prospects in the Indian market. They have started holding preliminary discussions with Indian carriers to attract them into their respective teams.

"The need and potential of having an Indian airline in the alliance has grown. We have held exploratory discussions with Air India, Jet Airways and Kingfisher about joining the alliance. Sooner than later we will have an Indian airline joining the SkyTeam," its chairman Leo van Wijk said.

Both van Wijk and his competitor, OneWorld's managing partner John McCulloch, told PTI separately that India was a huge market and a "major target ".

The SkyTeam chief said his alliance "has made it a priority to finalise discussions with Indian carriers and select a partner."

However, McCulloch pointed out that the Indian aviation industry, where consolidation had already begun with the Jet-Sahara, Air India-Indian Airlines and Kingfisher-Air Deccan processes, would take "three to four years to stabilise. So any decision will have to be taken after that."

India, China and Brazil were "the next growth markets and the global airline alliances will see more participation from these nations," he added.

The state-owned Air India has, however, already declared its intention of joining the third group, Star Alliance.

Replying to questions, McCulloch also said India was set to become a "major aviation hub in the next two to five years" and give tough competition to other hubs like the Gulf and south east Asia.

"All the activity that is taking place in the aviation sector "� from purchase of aircraft, development of airports or the strong growth of the economy and the resultant increase in demand for air traffic "� will ensure that India becomes a major aviation hub. India's geographical position also goes to its advantage," he said on the sidelines of the 63rd Annual General Meeting of the International Air Transport Association (IATA).

The OneWorld chief also pointed out the "huge local and regional market" coming up in the Indian subcontinent and said "we have to consider that."

While the SkyTeam has ten airlines as members including Aeroflot, Air France, Alitalia, Continental Airlines, KLM and Northwest Airlines, OneWorld has members like British Airways, American Airlines, Cathay Pacific, Japan Airlines, Qantas and Royal Jordanian.

Star Alliance is the largest with other global carriers like United Airlines, Lufthansa and Singapore Airlines.