Air India joins Star Alliance (breakingtravelnews.com)
June 5, 2014
Air India’s forthcoming membership of Star Alliance will be a welcome start to the Bharatiya Janata Party’s (BJP) governmental term, according to aviation intelligence expert OAG. As the BJP’s new Prime Minister Narendra Modi promises to revive economic growth in India, Air India’s new position will improve India’s connectivity to high-growth economies and give Star Alliance members access to India’s vibrant domestic air market.
“With a population of 1.2 billion and an economy projected to grow by 5% this year, India is a market which international airlines have yet to penetrate,” says John Grant, executive vice president, OAG. “Successful integration of Air India into Star Alliance will require some tweaking of schedules but the network benefits look set to work for India’s flag carrier and a good number of the alliance’s members.”
According to OAG, India’s international capacity is growing at a steady rate of 3%. In June 2014, Air India and Star Alliance carriers collectively provide 28% of India’s international capacity. Air India currently operates to 33 international destinations with a focus on the Middle East (54% of seats) and Europe (12% of seats). Joining Star Alliance potentially adds 11 unserved international destinations to Air India’s network. Two of these are in China, three in Africa (where Air India does not currently operate) and five in Europe.
Grant continues: “As India is arguably better placed geographically than the Gulf region as a connecting point for the emerging traffic flows between China and Africa, as it is close to the Great Circle Route, effective scheduling between Star Alliance members Ethiopian Airlines, South African Airways and Air China might see some of this traffic shift to Mumbai and Delhi routings.”
Turkish Airlines, a Star Alliance member, will potentially provide Air India access to a well-placed network and one-stop connectivity across Europe, North Africa and even into sub-Saharan Africa. This should improve Air India’s ability to compete with the ‘big three’ gulf carriers (Emirates, Qatar and Etihad) which now contribute 16% of India’s international capacity.
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Tags: Air India, Star Alliance