New Delhi: A key part of the Indian government’s turnaround plan for Air India, the country’s unprofitable national carrier, has collapsed.
Star Alliance, a global network of airlines that caters to frequent international travelers, said Monday that Air India’s pending membership had been suspended.
“Air India has not met the minimum joining conditions that were contractually agreed in December 2007,” Star Alliance said in a statement. The alliance had said earlier this year that Air India would need to be ready to join by the end of July at the latest.
Air India has been struggling, as customers have turned to more efficiently run private airlines in India. The company has a reputation for late flights and poor customer service, and it is hemorrhaging money.
Many employees have not received their full paychecks in more than a month, and former and current pilots have complained in recent months that the company is not following internationally recognized safety norms.
The Center for Asia Pacific Aviation estimated that the company had lost $1.75 billion in the most recent business year, which ended March 31. Air India reported a loss of $1.25 billion for the previous business year.
01/08/11 Heather Timmons/New York Times
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