"We are confident that the association with Star Alliance would go a long way to strengthen both of us," Air India CMD Rohit Nandan was quoted as having said after the meeting in Vienna.
The Alliance had put the proposal for Air India's entry into the grouping on hold since July 2011 on the grounds that the airline had not fulfilled major conditions to join it, a charge the Indian carrier had then denied.
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Once the airline becomes a member, its passengers would enjoy major benefits, including seamless transfers on travel across the world, more frequent flyer mileage points, code-sharing leading to a wider choice of flights and access to over 1,000 lounges at airports worldwide.
The Star Alliance network offers 21,900 daily flights to 1,328 airports in 195 countries. Its 28 members include top airlines like Lufthansa, Singapore Airlines, Air Canada, Air China, Air New Zealand, ANA, South African Airways, Austrian, THAI, Turkish Airlines, United Airlines and US Airways.
At one stage, Jet Airways was also vying with Air India to join the grouping.
The 28 members of Star Alliance include top airlines like Lufthansa, Singapore Airlines, Air Canada, Air China, Air New Zealand, ANA, South African Airways, Austrian, THAI, Turkish Airlines, United Airlines and US Airways.
The integration process, which is likely to take three months, involves, among other things, integration of an airline's flight network, ticket booking systems, matching of frequent flyer programmes and access to lounges in home countries of the airline.
It also entails seamless travel by a passenger from a foreign destination to a domestic destination, by switching flights and airlines which are members of the alliance. The Star Alliance decision to resume the integration process for Air India comes at a time when the airline was improving its market share, passenger revenue, load factor and on-time performance, as has been reflected in its performance in the second quarter of the current financial year.
While Air India's passenger revenue was up 22 percent in July-September, its market share grew 1.3 points from 18.5 percent. Its average network occupancy factor also went up by 3.8 percentage points at 72.5 percent compared to 68.7 last year. While its domestic occupancy factor was higher by 8.7 points, it was higher by 1.6 points on the international sector. The airline's on-time performance also showed an improvement by touching 83 percent.
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