Experts Welcome Air India's Entry Into Star Alliance
Terming Air India's entry into Star Alliance as a "morale booster", aviation experts on Tuesday said it will also benefit the flyers.
"Air India becomes the first Indian carrier to become part of a global network. Full marks to Air India's management and staff who achieved this feat despite myriad challenges," said Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG.
Stating that the entry will enhance the national carrier's global access, passenger and cargo volumes, revenues and profits, Mr Dubey said passengers can earn and burn mileage points on member carriers and access lounges and other facilities.
He said the move will boost foreign tourist arrivals in India and the membership will also bring closer scrutiny of Air India's service quality, safety record, on-time-performance and seamless IT integration with other members.
"The Star membership also enhances Air India's valuation in case government decides to go in for partial or complete privatisation of the loss making airline."
It is a recognition of Air India's improved operational, financial and service performance, said Dhiraj Mathur, executive director and leader for aerospace and defence at PwC.
"It is a good news. It is positive for the airlines as well as for the passengers," Mr Mathur said.
Though Air India has not completely wiped out the red ink from its balance sheet, it has certainly reduced the losses in the last couple of years and improved operations, he said.
The move would help passengers to access the alliance's global network of over 21,980 daily flights to 1,328 airports in 195 countries.
Star Alliance members jointly own 4,338 aircraft and fly over 640 million passengers a year.
