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Regular-article-logo Monday, 28 April 2025

STAR ALLIANCE KEEN TO ROPE IN AIR-INDIA, IA 

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FROM JAYANTA ROY CHOWDHURY Published 07.04.00, 12:00 AM
Singapore, April 7 :     The 11 member Star Alliance, one of the three global airline groupings, is interested in inducting either Air-India or Indian Airlines as a member. Rono J. Dutta, president United Airlines, the largest Alliance member, said here today, 'While both China and India are witnessing rapid growth, our network has several gaps. Hence, we have had preliminary discussions with airlines in India.' 'Ideally we would like an integrated A-I and IA to join us. Otherwise both are potential candidates,' he added. He ruled out inducting smaller private airlines in India as Alliance members. Further, Dutta, who took over last year as president of UA which has a fleet of nearly 600 aircraft, said, 'India is making a big mistake by not integrating the two airlines. You can't compete globally without integrating domestic and international services.' 'With its present strengths, A-I can do well as a regional player. To be global it must get into the global gameplan,' he pointed out. The UA chief was present here today with chief executives of ten other top airlines to welcome Singapore International Airlines into the grand alliance. 'There are few areas left in the world where Star Alliance doesn't have a significant presence,' said Cheong Choong Kong, CEO of Singapore Airlines. 'But big is not necessarily beautiful. What matters is more benefits to customers, a convenient global network, more travel options and seamless and convenient connections.' But the expansion of the alliance was not without the undercurrents of tension. SIA's biggest rival in the region - Thai Airways - is reportedly unhappy with Star for taking on SIA as a member. Analysts estimate Thai will lose up to $ 10 million as a result. Thai Airways chief Thamnoon Wanglee however, denied these reports. But Wanglee faces a major public outcry over the issue back home where the usually tame Thai press has turned it into a prestige issue, since Singapore Airlines and other Star members have proposed to pick up a stake in the state-owned airline However, the $ 354.9 billion alliance which has Lufthansa, Ansett Australia, All Nippon Airways, Air Canada, Air New Zealand, SAS and Varig of Brazil as its members, is aware of the importance of national identities, despite the 'cartelisation' of the skies. Dutta pointedly stated at the meet, 'There has to be diversity, even as we try to harmonise our standards and efficiency levels.' The alliance which competes with 'One World' and 'Wings,' is set to welcome two more members in July - British Midland and Mexicana Air. Choong indicated that SIA may push its newly acquired partner Richard Branson's Virgin Atlantic Airways towards membership of the alliance.    
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