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
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