Elusive ‘Star’ turn costs Air India Rs2 crore per day

New Delhi: A delay in joining the global airline grouping, Star Alliance, is costing Air India (AI) Rs1.5-2 crore a day in revenue.
Officials say the airline’s inability to offer domestic connections in important markets like the US — where AI operates direct flights to New York but not to the West Coast — have hit revenue generation significantly.
The officials are hoping the airline woauld be able to join Star Alliance by July 31, the latest deadline set by the international body.
Star Alliance has already given AI three extensions to complete all formalities over the last two years, in a scenario where some private Indian carriers are also keen to join the airline grouping.
But Air India has faced several problems on this issue, the biggest being the absence of a single code till a few months back.
Erstwhile Air India and Indian Airlines flights were earlier being operated separately on ‘AI’ and ‘IA’ codes, which meant separate ticketing, among other things.
Star Alliance had made it clear from the beginning that in order to join it, India’s national carrier will have to first get a single code and an integrated passenger service system, or PSS, which includes integrated bookings.
An airline official said an AI team will be going to Frankfurt next month to conclude negotiations on joining the Alliance.
09/05/11 Sindhu Bhattacharya/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: Air India May 2011, Foreign May 2011, New May 2011