Jet Airways AllianceThe Jet Airways Alliance
As Air India was heralded as a possible member of the alliance, which has a 23.6% stake in the airline via its airline franchise and 1,328 worldwide routes, Star allowed room for another of the country's premier carriers to join as a second member. However, Jet has never signed up to this alliance and Air India has experienced many difficulties.
In 2011, member carriers of Air Stars denied Air India access and it was widely assumed that a delayed Jet ruling was one of the causes. The Jet has filed an appeal with the federal authorities to allow it to become a second member of the alliance. However, Air India and Star Alliance returned to negotiation at the end of 2013 and it is expected that Air India will become a member carrier after completion of the ongoing on-going membership processes (for IT and contract commitments for FFP etc.), possibly in June when the Stars Alliance will meet for its London Sommersession.
However, Klick declined to set a timeframe for completing the assimilation work. "The member companies must carry out all stages of the incorporation proces before the initiation is known. He said, "The assimilation processes (with Air India) are on course. "There is a vast Indian economy and there will be a need for extra service and we will need more Indian partners," added Klick, demonstrating Allianz's readiness to participate in a second carrier.
He did, however, clear the air upon reporting that the group had discussed with India's biggest low-cost carrier IndiGo about a possible bond. Budgets are usually kept out of the scope of our international alliance, but Klick said that the increasing power of low-cost carrier companies is definitely prompting Star Alliance managers to consider the opportunity to involve low-cost companies.
"The Star Alliance leadership will look into every possibility, and we're not giving anything away yet. Following the admission of Air India as a member, customers will have direct connection and other air mileage advantages provided by its 28 airlines partner (such as Lufthansa and Singapore Airlines) with more than 21,900 day trips and air port-lounge facilities.
After being put on a narrow line by the Indian authorities when they issued a Rs 30,000 chrore stake as capital for the company, Air India is currently executing its fiscal and operating restructure program.