Air India fast-tracks flight into Star

National Aviation Company of India Ltd (Nacil), the debt-ridden, state-owned manager of Air India, has fast tracked plans to be a working member of Star Alliance.

A senior official of the airline said the membership will help give AI a boost in business and help increase passenger load factors. “This alliance…allows us to be a part of the top 21 airlines of the world, with 17,000 flights daily flying to and fro from 916 destinations in 160 countries,” said the official.

Membership will see AI’s passenger load factor rise 7 per cent on an average, as it would include agreements with other airlines to carry their passengers domestically and internationally.

In August, Air India had a passenger load factor of 59.8 per cent and flew close to 6 lakh passengers.

Sources and analysts say that this membership will help the airline to draw more domestic traffic, thanks to the code-sharing agreement between Air India and other airlines that are a part of the alliance.

Kapil Kaul, CEO (Indian subcontinent and Middle East), Centre for Asia Pacific Aviation, an international aviation consultancy, said AI’s primary benefit will be in revenue enhancement. “Also, being a part of this will help the airline be a part of a global network, in turn help create a global appeal for the customers,” he said.

According to the turnaround plan tabled by the Air India management earlier last month, the airline plans to enhance revenues by 135 crore per month through route rationalisation and various code-shares with Star Alliance members.

Air India was invited to be a part of the Alliance in 2007, and the deal was meant to be finalised by March 2009. However, the delay has been caused due to dual codes that are currently used by Air India (AI) and the erstwhile Indian Airlines (IC) flights.

“We are currently in the process of finalising a common code for all our flights, and within three months after this, our membership will be applicable,” said an airline official.