Have seen 5/20-like rules in other countries too, says Star Alliance

FRANKFURT: The government’s decision on Monday to grant extension to Air India chairman Rohit Nandan till next August will bring relief to Star Alliance. The uncertainty had left Star Alliance, which inducted the Maharaja into its fold recently, nervous over which way the airline will be headed.
The alliance had even toyed with the idea of shifting its bi-annual chief executive board (CEB) meeting, slated to be held this December in Delhi, out of India as it was felt that AI may either not have a full time CMD or a new person, who is yet to settle in the role, when the meet takes place.However, a request from Nandan that such a move could embarrass the airline led to a change of heart and now the meet will be in Delhi.
“We have been very pleased with the progress made by AI in the past two to three years. It really was through Nandan’s intervention that we found the right solution for AI to join the alliance. He and his team did a terrific job,” Star Alliance CEO Mark Schwab said.
Meanwhile, with the government planning to do away with the rule that an Indian carrier must be five years old along with a fleet of at least 20 planes to fly abroad on the grounds that such restrictions do not exist anywhere in the world, the alliance said similar conditions can be found elsewhere too. “There is a similar rule in Korea. The basic concept is that the airlines are first expected to prove themselves in the domestic arena as good players before being allowed to fly abroad. Such things are not uncommon,” the CEO said.
The new government has not ruled out privatizing AI and says all options are open. When asked what could be a better ownership model for the debt-ridden carrier, Schwab said: “(The talk of) transitioning more into the private sector (for an airline) is heard not only India, we hear from other parts of the world also. That is an industry trend. Each case is different and India will make its own decision.”
Meanwhile, Schwab said Star is looking to get another Indian airline as a Star member within five years. “We have two-carrier (as members) policy for a country having the size and importance like India. In other large markets too we have more than a single airline as our members,” the CEO said.
(The writer was in Frankfurt at the invitation of Star Alliance)