Saturday, 14 September 2013

The Alliance Conundrum & Air India


Chocks-on..The Weeekend Platter  ( 14 SEPT.,2013 )  ISSUE – XIII 

Oops !! The Alliance Conundrum  &  Air India……
Will it be…’ Star Alliance ‘ or ‘ One World ‘ or ‘ Sky Team ‘……

Air India Spokes person… “We cannot wait endlessly for induction into Star Alliance. The members are scheduled to meet and vote at the end of this month. If we do not receive a positive response, we will proceed with our talks with Qatar Airways for membership in OneWorld,”
The ‘ Star Alliance’ Dilemma…..

…’ “Star Alliance’s market share(in India) is declining.”…. “The feeling was that Star is no more a natural choice for passengers from India. Most of the traffic is flying Indian carriers or being taken away by Gulf airlines,” 
Qatar Airways has approached Air India to join Oneworld alliance….

…Qatar Airways, the first Gulf carrier to join an International Alliance, has offered full support to Air India,to join One World Alliance. Star Alliance, with 28 airlines members is significantly larger than One World,with 12 member airlines…
Are Air India’s talks with Adria Airways directed at support for Star  Alliance…..

“.... Air India continues to engage with major airlines for enhancing bilateral cooperation, and also continues to maintain dialogue with Star Alliance in an effort to expand its global reach and connectivity," said an Air India spokesman.
Some Media Comments on Air India’s quest for an Alliance…

…..Star's 27 members voted unanimously to place Air India's membership "on-hold" after the carrier failed to meet a July 31 deadline to fulfill all joining requirements, despite granting AI ample timeline extensions over the course of nearly 4 years to get its act together…..
…..Air India's boot from Star was single-handedly one of the most embarassing high-profile blunders in the carriers' history, as no surviving airline has ever been denied membership from Star Alliance…..

…..As the Persian Gulf Carriers expanded into the Americas, as well as secondary and tertiary cities in India, Star Alliance network carriers from Europe and North America felt the pressure in their Indian markets. So, it was necessary to develop local ties with an Indian partner…..
…..In spite of its re-branding initiative, which went live in 2007, Air India's alliance integration process encountered massive delays and hold-ups. The largest pain point was Air India's ongoing merger with Indian Airlines, which was poorly executed on all fronts…..

……In May 2011, Star Alliance CEO Jaan Albrecht issued a warning to Air India that its invitation to join the alliance would be withdrawn if the integration process was not completed by July 31 of that year……
…..it appeared that what sealed AI's fate was an official voting process that had taken place among Stars 27 members… it became apparent that a large contingency of existing Star members simply did not want to include Air India included in the alliance…..

…..Air India has to join an Alliance.  Air India cannot compete as an unaligned network carrier in the interim without sustaining heavy losses….
( Culled from an article by Rohan Anand in UPgRD network )

Codeshare with Latin American carriers…..
…..Air India, is exploring options for a codeshare with LATAM airlines group, South America’s largest airline group, for access into the huge South American market….

Happenings in the Indian Market……
Shri Ajit Singh, Minister of Civil Aviation……on reducing VAT on ATF…..

….At a Conference of Civil Aviation Ministers, the MoCA said……’ Lowering of VAT on ATF by Chhattisgarh has led to “a six -fold increase in ATF uplift”….. “So my request to you all will be that you should take up with your government to reduce VAT on ATF to four per cent”…..
Shri D Sudhakara Reddy, President, Air Passengers Association of India- on fare hike….

…. There has been a hike in the aviation turbine fuel a few days ago and all the airlines have increased the fares by 25 per cent one after the other, though fuel price had increased by only 6.9%….. “This is not the first time they have increased the fares in tandem and it has become a practice with all these airlines……
Senior Air India Official- on a Sovereign Guarantee for a bank loan……

“…. The current account deficit is at an all-time high. There is a resource crunch in the finance ministry, due to which it has become difficult for the government to infuse funds. There is a shortfall of around Rs 2500 crore in the total sum of Rs 15,600 crore targeted for infusion in the airline in FY13 and FY14,”……
Shri K.N. Shrivastava, Aviation Secretary – on cancellation charges levied by airlines….

..... We have asked airlines to have a graded system for cancellation and rescheduling charges. Airlines have agreed to consider it and said they will come up with a formula soon,"
Passenger friendly initiative by the Ministry….setting up an OMBUDSMAN…

…Shri KN Shrivastava, in a major decision that will empower the customers announced…” Time has come to implement the ombudsman system. We will have ombudsman set up in Delhi and Mumbai to begin with. Then, depending on experience, we will have them in major centres,"…..
Air India helps Delhi Airport witness a surge in transit passengers  ( Economic Times )

Spokesperson of GMR airport, … "While Air India is the biggest contributor to our growth as a hub, we can't discount others such as Jet Airways,"…..
( A very retrograde development, by the fledgling and loss making Air India.  Air India, instead of helping its position, and strengthening its footprint in Mumbai, preferred to work for the economic resurrection of Delhi, at the cost of uprooting and diluting its presence in Mumbai. In a country like India, where foreign carriers are trying to establish their positions in major Indian gateways, Air India on the contrary - Uprooted itself from a long established base of Mumbai. Who did this benefit ? Not Air India, for sure ! WHAT AN IRONY ?? Air India has become a saviour for all & sundry….except for its self…)

Vow !! Great News….King Fisher may revive……
… the company on Friday informed the Karnataka High Court that a scheme is being worked out to revive the airline by finding investors…. “You may get good news. You have waited so long, wait for some more time…”, remarked Justice S. Abdul Nazeer,

Happenings Around the World…..
S.E. Asia Region becomes the capital of Low Cost Airlines….
The region’s LCC fleet is poised to grow by about 20% in 2013, surpassing over 500 aircraft at year-end.

Now Aeroflot to Launch a Low Cost Airline….
Aeroflot's goal is to get a new carrier in the skies by 2014 to have a chance at competing with European low-cost carriers that are now launching routes to Russia. It will need to first convince Russian government to change current aviation regulations- Samantha Shakman

Emirates to Launch Worlds Longest Flight……
Emirates in partnership with Boeing is planning to launch Ultra Long Haul flight of 20 hours duration. The flight is dependent on Boeing’s promises to deliver the so-called 777X, an improved version of its biggest twin-engine jet with new wings and larger window….

Qatar Airways wanted to Join Star Alliance, but Lufthansa was ‘ Hostile ‘…
Qatar Airways CEO,Akbar Al Baker, said….”  My first code-share with a European carrier was with Lufthansa, but unfortunately their strategy is to kill competition,” …. “It is to shun Gulf carriers, and I think they have lost in this very lucrative alliance chess game.”

Vow ! Did you Know this ?....Longest Flights in the World..
SINGAPORE  AIRLINES – Newark to Singapore – 18 Hours , 50 Minutes ;
TURKISH AIRLINES –  Istanbul  to Sydney  -  18 hours , 20 Minutes ;
SINGAPORE  AIRLINES – Los Angeles  to Singapore  -  18 Hours , 05 Minutes ;
DELTA AIRLINES -  Johannesburg  to  Atlanta – 16 Hours , 55 Minutes ;
AIR CANADA – Vancouver  to Sydney  - 16 Hours , 35 Minutes  ;
QANTAS -  Sydney  to Dallas – 15 Hours , 20 Minutes

 
With this, we sign off for the week !!

Wishing You and Your families, Happy Ganpati & A Swell Weekend  !!!!

Our Credo….”Network & Be Informed “

( PLEASE VISIT OUR WEBSITE : http://chocks-on.blogspot.in/ )

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