AIR INDIA WANTS ANSWERS OVER STAR ALLIANCE

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By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:55

AIR INDIA WANTS ANSWERS OVER STAR ALLIANCE

Air India wants the ministry of civil aviation to facilitate compensation from Star Alliance and German airline Lufthansa – its mentor in the application process – for breaking their understanding over the national carrier’s entry into Star Alliance. Air India’s membership to the alliance was put on hold indefinitely last week.

Air India told the ministry that Lufthansa said Jet Airways’ integration with the alliance begin immediately after Air India’s entry, a proposal that Air India objected to because Jet has not been granted government permission to join the alliance. Lufthansa ha stated that it shares Star Alliance’s long-standing position that more than one airline could join the alliance from India.

Air India wants the government to review the enhanced bilateral opportunities extended to Lufthansa granted on the understanding that it would have the German airline’s support for entry into Star Alliance.

Air India spent $5-10 million to meet the minimum requirement for joining the alliance and fears it will be forced to pay an exit fee of $25 million may have to be paid.

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By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:55
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