Air India’s inability to meet its minimum entrance criteria set by its contract to enter the Star Alliance means that the two parties have mutually agreed to “suspend” the integration of Air India.

Or have they?  One person speaking for Air India says Air India received notice from a Star Alliance project manager that all the minimum critieria had been met. 

Some say that this is about politics and, specifically, about India protecting the market share of Air India by being very cautious (to use the politically correct saying) in granting traffic rights into and through India.   It’s no surprise as many airlines have indicated a desire to fly more to India.  In addition, no airline with the A380 has yet been able to fly to India with it because airport authorities say the airports aren’t ready (while airport managers scratch their heads and say “Yes, we’re ready.”) 

Air India is owned by the Indian government and entry into the Star Alliance was a part of its plan to have Air India stand on its own and, eventually, become a private airline.  This hurts Air India far more than India’s refusal to grant flights into its country hurts other airlines.

Filed under: Airline News by ajax
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