Thursday, June 26, 2014

Air India sees 4-5% rise in revenue post entry in Star Alliance

Reeling under financial stress and increasing competition from Gulf carriers, industry experts said that the inclusion of Air India into Star Alliance will do little for the airline to revive from the current position.

National carrier – Air India on Tuesday announced its much-awaited entry into Star Alliance – the biggest grouping of global airlines. After being rejected by the alliance 3 years ago, the airline is now officially set to join the grouping of 26 other airlines by July 11 this year. The move is expected to increase revenues of the airline by 4-5%, according to the airline.

"Today about 13 Star member airlines operate to 10 destinations in India and account for a total share of 13% of India's to and fro market. The inclusion of Air India in Star would take Star Alliance to a stronger position with a share of about 30%," said a note issued by the ministry of civil aviation (MoCA).

Minister for civil aviation, Ashok Gajapathi Raju Pusapati while announcing the inclusion of Air India into Star Alliance said that Air India will get benefit out of this association as a wider reach and access to existing facilities for the members of the world's biggest grouping of airlines would now be available to the passengers of Air India also.
25/06/14 Yuga Chaudhari/Daily News & Analysis
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