Air India reportedly plans to open talks with SkyTeam and oneworld, after ongoing plans to enter Star Alliance ended, according to a Business Standard report. Civil Aviation Minister Ajit Singh said, "To be part of the alliance, every member has to agree and that has not happened, especially after the pilots' strike, when we lost a lot of credibility. They [Star Alliance] have practically said no and have sent us a letter last week. We have asked Air India to look for other options and alliances." This paves the way for Jet Airways, which has applied for government permission to join Star Alliance. Mr Singh said, "I think Jet being a private airline cannot be a cause to stop them. It is also a domestic airline and flies with our national flag. It is up to Star Alliance to accept them."
Air India ends talks with Star, paving way for Jet Airways; AI open to talks with other alliances
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Singapore Airlines Group and Changi Airport to benefit as India-Singapore market opens up further
The Singapore-India market is poised for a modest increase in capacity, driven by further expansion from the Singapore Airlines (SIA) Group made possible by the recent signing of an expanded bilateral between the two countries.
The updated air services agreement only increases the previous capacity allotment for Singapore-based carriers by 10%. But SIA will take whatever it can get as Singapore-India is an important and generally under-served market. Incremental increases are typical with the India-Singapore bilateral, which has been updated several times in recent years, although Singapore would prefer a much bigger and broader agreement.
SIA along with full-service subsidiary SilkAir and low-cost carrier affiliate Tiger Airways already account for over 70% of capacity between India and Singapore. Indian carriers do not require a revised bilateral as they were using less than 40% of the prior allotment. Indian carriers over the last year have seen their share of the market decrease and may see their share drop further by the end of 2013 as the SIA Group again boosts capacity to India.
CAPA Airlines in Transition report, Part 1: The natural history of airline alliances
From the first US Open Skies agreement with the Netherlands in 1992, and the subsequent granting of antitrust immunity to the KLM-Northwest joint venture in 1993, the evolution of airline alliances has been rapid and far reaching. Bilateral codeshares, immunised JVs, multilateral branded global alliances, the Etihad equity alliance: why are there so many models? In the first of a series of reports based on CAPA’s recent Airlines in Transition conference in Dublin, we examine the history and evolution of airline alliances and partnerships.
After decades of strict regulation of international traffic rights post WWII, which controlled destinations, capacity, frequencies and prices, a campaign for more liberal air services agreements (ASA) between nations began to gather pace in the US from 1977. In the words of Jeffrey Shane, General Counsel, IATA and a former senior US aviation regulator, any attempt to modify an ASA was characterised by a "highly calibrated, tit-for-tat mode of negotiation".