Business

AI inducted into Star Alliance, raises turnaround hopes

Sanjay Thapa

In what is being seen as a major gamechanger for  ailing Air India's fortunes, the national flag carrier will start operating as Star Alliance partner from July 11th after having been inducted into the elite  club of 26 major global airlines on Monday in london.

“Initially two AI carriers will be carry out the livery of the Star Alliance logo which will be carried out by Boeing company itself,” said Rohit Nandan, CMD, Air India told The Pioneer at the sidelines of the event. Teams of Air India, Star Alliance and its member carriers would  complete the final works to ensure the Indian airline can offer all customer benefits from July 11.

“We are happy to note that Air India has become part of the Star  Alliance. This is one of the biggest alliances in the world,” said Civil Aviation Minister Ashok Gajapathi Raju while commenting on the long seven year wait for the inclusion of AI into the elite club. The other major global airline alliances are Oneworld and Air France- KlM led Skyteam.

“Air India's revenues may increase by 4-5 per cent by joining the alliance, “ said Nandan as he expressed optimism that the event would enable a turnaround for the ailing PSU which has drawn much flak over its loss driven operations as well as the various other controversial deals including the induction of  defective Dreamliners, pay parity issues with IA induction as well as debate over sponsored seats.

Speaking on the issue and expressing optimism on turning around AI profit books he said: “We hope we will also be able to release remuneration of the employees of the airlines in due time.”  It may be recalled that already the Mumbai High Court has  cleared the Dhramadhikari panel recommendations on wage restructuring of AI subsequent to the merger of the IA. “We would ensure to resolve the a issue for both parties with a general concensus,” he added.

The induction of AI in Star Alliance is also expected to enable seamless travel for the airline's passengers  to over 1,300 destinations.