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Business News/ Companies / Air India Express likely to become a Star Alliance connecting partner
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Air India Express likely to become a Star Alliance connecting partner

The subsidiaries may not receive a full-fledged membership but a limited one under a new category called connecting partners

Photo: MintPremium
Photo: Mint

New Delhi: Air India Ltd wants its subsidiary airlines to be members of the exclusive Star Alliance grouping, according to two Air India officials who declined to be named.

The airline is likely to start the process by seeking membership for Air India Express. Air India Express flies to West Asia; another subsidiary, Alliance Air, flies on regional routes.

The subsidiaries, however, may not receive a full-fledged membership but a limited one under a new category called connecting partners, one of the two airline officials said.

This means they will have limited benefits of the Star membership. They may not be able to flash the Star logo, but will be able to code share and expand commercial tie-ups with three member-airlines of their choice.

A code-share flight is one that is marketed by one carrier and operated by another. Airlines agree to sell seats on each other’s flights to give passengers a wider choice of destinations.

Star, with two dozen members, including Lufthansa, Singapore Airlines, Thai Airways and United Airlines, offers a network of about 18,500 daily flights to 1,330 airports in 192 countries. It allows members to sell tickets jointly, earn and burn miles, use common infrastructure and coordinate flight schedules.

Those inducted as connecting partner airlines will have to offer some services to passengers of Star Alliance members. This will require reconfiguring several IT processes and systems.

Air India Express, which is expected to join as a connecting partner airline, currently has 20 flights to West Asia. This region has one of the largest expatriate population from south India.

Under a new Star Alliance mandate, member-airlines can bring in their subsidiaries into the alliance.

“Every airline has a small airline, a low-cost airline or something. It will all add up," the second Air India official said, referring to Star carriers such as South African Airways’ Mango.

Star Alliance confirmed that it has received proposals for new membership. “We have been approached by numerous airlines, but will not release any names until we have finalized agreements," spokesman Markus Ruediger said in an email.

The airlines will need to be IATA Operational Safety Audit certified, he said. IOSA is a global airline safety benchmark.

Air India’s revenue from Star Alliance member-airlines nearly doubled from 110 crore in 2013-14 to 213 crore in 2014-15. The alliance partners brought in 150,000 passengers in 2014-15, compared with 66,000 in 2013-14.

An analyst said no Star carrier has major stakes in flights to Bahrain, Sharjah, Abu Dhabi and Kuwait where Air India Express flies. “I don’t see any harm in it," this analyst said asking not to be identified. However, he added that he also doesn’t see too much traffic flowing to Air India Express on account of this.

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Published: 29 Apr 2016, 01:24 AM IST
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