Terming the national carrier Air India's entry into Star Alliance as a "morale booster," aviation experts today said it will also benefit the flyers.
"Great news! Air India becomes the first Indian carrier to become part of a global network. Full marks to Air India's management and staff who achieved this feat despite myriad challenges," global consultancy KPMG partner and India head of aerospace and defence Amber Dubey said.
Stating that the entry will enhance Air India's global access, passenger and cargo volumes, revenues and profits, Dubey said passengers can earn and burn mileage points on member carriers and access lounges and other facilities.
Dubey said the move will boost foreign tourist arrivals in India and the membership will also bring closer scrutiny of Air India's service quality, safety record, on-time-performance and seamless IT integration with other members.
"The Star membership also enhances Air India's valuation in case government decides to go in for partial or complete privatisation of the loss making airline," Dubey added.
Dhiraj Mathur, executive director and leader for aerospace and defence at PwC, said it is a recognition of AI's improved operational, financial and service performance.
"It is a good news. It is positive for the airlines as well as for the passengers," Mathur said.
He said though Air India has not completely wiped out the red ink from its balance sheet, it has certainly reduced the losses in the last couple of years and improved operations.
The move would help passengers to access the alliance's global network of over 21,980 daily flights to 1,328 airports in 195 countries. Star Alliance members jointly own 4,338 aircraft and fly over 640 million passengers a year.
