Breaking! No Star for Air India

Neelam Mathews

Aug 1, 2011
Time- 9:15am IST

Patience has its limits. After extending an invite to Air India in Dec 2007, Star has suspended the integration of Air India into the alliance after meeting of its board yesterday, July 31. This is possibly the first time Star has made such a move.

“This is due to the fact that Air India has not met the minimum joining conditions that were contractually agreed in December 2007,” says a Star statement.

Air India’s numerous delays and promises to join the alliance is not going to help its sagging image. 

Following a recent review of the status of Air India’s application at a meeting held between the Indian Ministry for Civil Aviation, Star Alliance CEO, Jaan Albrecht and the Air India CMD, Arvind Jadhav, the decision to suspend has received subsequent confirmation by the Star Alliance Chief Executive Board, says Star.

 

Star also says the decision has been made jointly with AI.

Ailing Air India has said to have paid approximately $12 million as joining fees to Star. The fate of the money is not clear and whether Star is committed to return it. Despite its internal issues, Air India also paid SITA $190 million for the double migration of Air India and Indian Airlines to SITA's Horizon Passenger Services System (PSS) to operate as a single unified carrier with a single code, to help pave the way for entry into the Star Alliance in mid-2011.

Now, talks are already said to be on with SkyTeam and there is speculation that if Air India joins Sky Team, Jet Airways that has not been allowed to join Star till Air India does, will then be allowed to enter Star membership.

 “Existing bilateral relationships with Star Alliance member airlines are not affected by this decision, which also leaves room to discuss a potential Alliance membership at a future stage, if deemed appropriate by both parties,” adds Star.

EgyptAir joined the alliance in a record nine months. Ethiopian that has been extended the invite, is also said to be in the process of getting its IT in order.

Star Alliance CEO, Jaan Albrecht politely said: “With the collective decision to put the integration efforts on hold today we aim to contribute to Air India’s flexibility to concentrate on its ongoing strategic reorientation. In this process our member carriers will continue to provide assistance to Air India wherever required.”

Existing bilateral relationships with Star Alliance member airlines are not affected by this decision, which also leaves room to discuss a potential Alliance membership at a future stage, if deemed appropriate by both parties, he adds.

SITA took the two separate airlines' IT platforms and completed this complex migration to the new PSS in a record 293 days. This included the transfer of more than half a million Passenger Name Records (PNRs) with 99.99% accuracy. 

Arvind Jadhav, AI Chairman and Managing Director, had said in March: “Implementation of the Horizon Passenger Services System will complete the merger of Air India with the former domestic carrier Indian Airlines, and enable us to align processes and systems to meet Star Alliance standards. Air India will then be able to leverage the complementary strengths and synergies of the single new carrier to the maximum, resulting in a more competitive, customer friendly and world class airline with significant improvement in our passenger yields.”

Apparently, there was something missing!