AIR INDIA IN DANGER OF EXCLUSION FROM CARRIERS’ ALLIANCE

NEW DELHI — Air India risks becoming rejected by the Star Alliance network of airlines because of delays in fulfilling membership conditions, an executive from Star Alliance said Monday, putting in jeopardy a key element of the turnaround program for the troubled state-owned airline.

“We have indicated to Air India that they will have to be ready to join, by newest, end of July,” stated Markus Ruediger, media relations director at Star Alliance. There are “items outstanding” on a list of about 80 requirements, he stated.

He did not elaborate about what Air India still required to do, but he said Star Alliance had already produced it clear that Air India had been given extensions and had taken longer then expected to fulfill the requirements. It is “not in their interest to delay any further,” he said.

Star Alliance first invited Air India to join the group of 27 airlines, which consists of Air China, Singapore Airlines and United Airlines, in December 2007. The company said in March 2007 that it would merge with Indian Airlines, the state-run domestic carrier.

Air India is hemorrhaging funds and lost about $1 billion in its latest annual outcomes. Buyers, driven away by frequent strikes and delays, are shifting to more modern, efficient private carriers in India.

Air India officials have stated in recent months that joining the Star Alliance is a key part of the airline’s turnaround strategy. Frequent travelers typically book flights based on regardless of whether an airline is component of their global network, which earns them frequent flyer miles when they travel.

Membership in the Star Alliance could improve Air India’s revenue by 9 percent to 15 percent, a organization official told The Hindu, an Indian newspaper, in an post published Sunday.

“We are talking to them and it is between us and them,” an Air India spokesman, Kamaljeet Rattan, said Monday when asked about the Star Alliance membership. “We would not like to go public about it.”

Air India is far behind rival airlines in some respects. For instance, the airline still does not use computers to make schedules for its 1,600 pilots, relying instead on pencil and eraser in a ledger.

Star Alliance has usually stated that the Indian market is huge sufficient that it could invite two airlines to be members. Star Alliance’s main rival, Oneworld, is aligned with Kingfisher Airlines in India.

“We do comprehend that Air India has undergone a merger, implemented a new IT program and has also tried to cope with a enormous fleet renewal at the identical time as the business went into a downturn,” Mr. Ruediger stated. “We made it extremely clear that we expect them to meet all the requirements by the end of July, bearing in mind that on typical integration takes around 18 months,” he stated.

A team of executives from Star Alliance and from Air India’s mentor airline, Lufthansa, are working with the Indian carrier to help it meet the requirements, Mr. Ruediger said.

“Clearly, the onus is on Air India to get the items achieved by the end of July,” he stated.

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