Air India's possible entry into Star Alliance will boost rev

K Mammen Mathew
Berlin, Mar 13 (PTI) India's national carrier Air India's
expected entry into the elite Star Alliance later this year
will expand its global footprint and boost its revenues,
according to the airline's Frankfurt-based Regional Manager
for Central Europe Ratan Bali.
The last major hurdle for Star Alliance membership was
removed when Air India and the Indian Airlines completed the
integration of their codes and began using a common code two
weeks ago, Bali told PTI at the travel trade show ITB Berlin.
The world's biggest fair, which kicked off on March 9,
concludes today.
A common code for both the airlines was a condition for
Air India to join the alliance, he added.
The airline also started using a new reservation system
in preparation of joining the alliance.
Star Alliance network is a global leading airline
network, in terms of daily flights, destinations and countries
flown to and member airlines.
It was established in 1997 to offer customers worldwide
reach and a smooth travel experience. In order to become a
member, an airline must comply with the highest industry
standards of customer service, security and technical
infrastructure.
Bali said the planned delivery of the first batch of
Boeing 787 'Dreamliner' aircraft to Air India later this year
will also play a crucial role in expanding the airline's
international operations.
These aircrafts, which have an eight-hour flight range,
could be deployed in the Indo-European or Indo-far East
sectors, he added.
Air India has placed orders for 27 'Dreamliners' and
Boeing had recently announced that the first batch of aircraft
will be delivered by the end of this year.
Talking about revenue, he said Air India has recouped its
revenue losses from the closure of the European Hub at the
Frankfurt airport last year, by increasing the passenger
volume and reducing its operational costs in Frankfurt.
As part of its operational restructuring process, the
airline rerouted four flights operating from Delhi to Chicago
and from Mumbai to New York via Frankfurt airport as direct
flights on the India-US routes.
It closed down its European hub in Frankfurt at the end
of last year. Since then, the airline has been operating a
daily non-stop flight between Delhi and Frankfurt.
According to Bali, the loss of revenue for Air India due
to the diversion of the four flights was "minimal" and was
offset by a 70 per cent reduction in the operational costs in
Frankfurt.
Air India lost some passengers after it took out four
flights from the commercially important India-Germany route.
But the loss of revenue was recovered by a higher utilisation
of the seat capacity in the economy class and by increasing
the number of first and executive class passengers on board
the Boeing 777 200LR aircraft.
"The seat factor on these flights rose to 74 per cent,"
he said.
The diversion of the flights had very little impact on
Air India's transatlantic traffic because the airline was
already facing stiff competition from other major airlines on
these routes.
Air India's passengers bound for the US or other
destinations, however, could continue their journey from
Frankfurt on board Lufthansa flights because of a code-sharing
arrangement between the two airlines.
On expansion Bali said Air India plans to launch new
flights connecting Frankfurt-Delhi service with Melbourne and
Colombo. PTI KMM