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Star Alliance seeks possible Indian partners
 

SYDNEY: Star Alliance said it is in talks with Air India Ltd, Jet Airways India Ltd and Sahara Airlines Ltd to get one of them to join the world’s largest group of airlines, extending its network to the second-most populous nation.

“The Indian government has been opening the international market so these domestic carriers are not having access to the international network,” the group’s chief executive Jaan Albrecht said at a lunch in Sydney. “This is an area we are watching very closely.”

Air India planes parked at Bombay Airport. It is one of the Indian airlines that are in talks with Star Alliance. — Reuterspic

Joining Star Alliance would give a carrier access to more than 15,000 connecting flights a day run by other carriers flying to 840 destinations in 150 countries. Airline alliances help increase sales and reduce costs by feeding passengers onto other networks, sharing common facilities and making joint purchases.

India’s airlines are facing increased competition, with four new carriers started flying in the past two years and at least six awaiting government approval to begin. Falling ticket prices and India’s surging economy are encouraging more people to fly rather than taking government-operated trains.

“The evolution in India is quite dramatic,” Albrecht said. An agreement may be reached “rather quickly,” he said.

Air India and Jet Airways are both based in Mumbai. Sahara is based in New Delhi.

Frankfurt-based Star Alliance has also been looking to add a member from China and Russia, Albrecht said.

“China, Russia, India are our main target countries,” he said.

He said the group has been in talks with Beijing-based Air China Ltd, the country’s largest international carrier, though “it’s basically today in the hands of the Chinese government and last but not least to the Air China management to make the final decision,” he said. – Bloomberg

 
http://biz.thestar.com.my/news/story.asp?file=/2005/8/9/business/ 11715177&sec=business