Alliances and South AsiaBack to Forum
Anonymous5 May 2014
CAPA has come out (today 5-5-14) with an interesting article about Air India and its imminent entry into Star Alliance (in July 2014).
“Air India finally to enter the Star Alliance. Lufthansa now looks to escalate Gulf carrier rhetoric”.
Lufthansa has been feeling left out in the cold recently. Etihad having snubbed star Alliance, Qatar having entered oneworld, its relationship with Turkish becoming antagonistic and with Emirates as too much of a threat, it has felt it needs to sort out its connections with India´s massive market.
An additional reason is the opportunity to obtained better connections with Asia east of Bombay (oops sorry. Mumbai) and New Delhi.It also ensures its connecting traffic from India through Frankfurt to the rest of Europe and North America.
The article also looks at Jet Airways´ alliance with Etihad (24% stake) while saying that up to 49% stakes in Indian airlines are permitted with the exception of Air India. Then there are the new start-ups in Air Asia India and Tata-SIA(Singapore) while strong competition exists from Indigo, India´s largest LCC.
Oneworld, as the third alliance has access through Qatar, Air Sri Lanka and (to a lesser degree) Malaysian, apart from BA.
Interesting times ahead, with no doubt blood on the carpet. What are going to be the next move?5 May 2014
A Lufthansa-Emirates tie-up did seem pretty much possible end of last year.
While India is indeed a big market, i doubt passengers will flock to LH over the ME big three who’ll most certainly offer lower prices for connections to North America.
CAPA mentions how well the B787 has been doing for Air India…. i had the impression that the airline’s image had been ‘tainted’ due the string of misshaps that were permanently reported about the carrier’s dreamliner fleet. Though it sounds as if economically it’s working out for Air India.
Indeed a pretty fast tracking to join Star. I wonder if LH is now hoping to be the 1st ahead of SQ to debut the A380 to India.5 May 2014
As the CEO of Etihad has said, perhaps the time of Alliances has gone, and it is now time for new types of Airline groups, not stated as Alliances. Both Emirates and Etihad are strong enough, with good brand image to remain quite independent and successful. Co-operations with key Airlines, is leading to FFP’s linking Airlines that cross Alliances, something fresh and new. Slowly but surely, a world network is building, with a great mix of Airlines.
Their strategy of purchasing %’s of other Airlines, gaining Board influence and good investments, and playing a big part in change, but with their own direction well in mind. From Australia round to Europe it seems.
They are also purchasing FFP’s from others, all sensible investments and adding to their assets.5 May 2014
Oh Sorry. I don’t know why i had September 30th in my mind as the launch date for SIA’s A380 flights to India. It’s indeed highly doubtful that LH would beat that.5 May 2014
Looks as though Emirates will bring the A380 to India next:6 May 2014