Air India and Star Alliance fall out

Star Alliance and Air India have made a joint statement which affirms that the integration of India’s national airline into the multi-carrier grouping has been suspended.  Essentially this is due to the fact that Air India has not met the minimum joining conditions that were contractually agreed in December 2007 and highlights the serious financial position that the Indian national airline finds itself.  At present it is in the middle of (yet another) financial restructuring plan, due to be completed within three months.

Star Alliance CEO, Jaan Albrecht, said: “With the collective decision to put the integration efforts on hold today we aim to contribute to Air India’s flexibility to concentrate on its ongoing strategic reorientation.  In this process our member carriers will continue to provide assistance to Air India wherever required.”

Existing bilateral relationships with Star Alliance member airlines are not affected by this decision, which also leaves room to discuss a potential Alliance membership at a future stage, if deemed appropriate by both parties. www.staralliance.com www.airindia.com

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