Air India reportedly plans to ask Star Alliance to refund the amount paid as membership fees, following the carrier’s suspension to join the global airline alliance (The Telegraph, 08-Aug-2011). The carrier also plans to ask for a compensation payment, to cover costs incurred while it attempted to prepare itself for membership. Air India’s integration to Star Alliance was delayed because it did not have an integrated IT system between domestic and international operations until Feb-2011.
Air India to ask Star Alliance for membership fee refund and compensation
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Star Alliance connecting partner model evolves as Juneyao Airlines replaces Mango as first member
Star Alliance's connecting partner model is evolving beyond a proposition for low cost airlines. In Oct-2016 Star disclosed its intention to add Shanghai-based Juneyao Airlines. Although Juneyao is full service, the semantics of full service versus low cost have proven irrelevant: the core concept of Star's connecting partner platform is to secure transfer options in key markets. The Star benefits for a connecting partner are only realised when connecting on the same itinerary to a Star member. Unlike the situation with full membership, Star benefits are not offered on a connecting partner when the itinerary is only point-to-point.
Juneyao gives Star a partner in China's financial hub and replaces Star's former Shanghai partner, Shanghai Airlines, which left when it merged with SkyTeam's China Eastern. Juneyao is the second announced member after the South African Airways LCC Mango, but Juneyao will be implemented first in 2Q2017. As Juneyao grows and plans intercontinental 787 flights, the airline may transition to a full member.
Global alliances as the airline system metamorphoses: A view to 2025
The international aviation world will look very different in a decade. The big US airlines are re-emerging from their shells as prosperity (and slow growth in their mature domestic market) prompts them to go forth internationally.
China is inevitably and remorselessly stamping its shape on global markets; the Gulf carriers continue to expand and attract the ire of those who prefer the status quo; and low cost carriers proliferate and metamorphose.
And all this while, sadly, airlines look like remaining confined to the 1940s’ archaic ownership and control rules. Within this confinement, they continue to struggle to find new ways of expanding their geography – and, in some cases, of restricting others’. International markets have another drawback. They tend to be much more competitive, in diverse ways, than nationally protected domestic markets.