Friday, August 05, 2011

AI cries foul over Lufthansa's role in Star Alliance veto

New Delhi: Air India has asked the ministry of civil aviation to adopt a tough stance against German airline Lufthansa for breaking their understanding over the national carrier’s entry into Star Alliance.
Star is a network of airlines around the world, with various benefits for its members. Earlier this week, Air India’s membership application was formally put on hold. Lufthansa is a founder member of Star Alliance and was the mentor airline for facilitating Air India’s entry.
The national carrier has requested the ministry facilitate compensation from Star Alliance. A top official in the ministry said: “Air India has raised issues about Lufthansa and Star Alliance. We are considering the issues raised, and appropriate action will be taken.”
Air India has informed the ministry that Lufthansa had suggested in a meeting in December the process of Jet Airways’ integration with the alliance begin immediately after Air India’s entry. However, Air India objected to the proposal, saying Jet had not even sought government permission to join the alliance. Any Indian carrier that plans to join an alliance has to take prior permission from the government. In an official reply, Lufthansa said it shared Star Alliance’s long-standing position that more than one airline could join the alliance from important markets such as the US, China or India.
“Lufthansa and Air India entered a bilateral partnership in 2002. Today, Lufthansa operates more than 300 joint code-share flights globally with Air India, including all flights to and from India. This successful bilateral partnership continues,” it said.
Air India has said the enhanced bilateral opportunities extended to the German airline should be reviewed by the government.
It has communicated to the ministry it had supported the exchange of additional traffic rights for Lufthansa as part of an understanding that included the German airline’s support to its entry into Star Alliance.
05/08/11 Business Standard
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