Air India’s revival under the Tata Group is expected to transform the airline into a global brand. It is receiving all the help it can in terms of capital injection from the new owners as well as support from Singapore Airlines, which will own a quarter of the airline. Now, German flag carrier Lufthansa is also keen on deepening its ties with Air India to form strategic partnerships for better opportunities in the future.
Consolidating ties
Lufthansa Group Chairman and CEO Carsten Spohr was in India recently and had a discussion with Tata Sons and Air India (AI) Chairman N Chandrasekaran about possible synergies in the future. Singapore Airlines (SIA) CEO Goh Choon Phong was also part of the discussion.
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Spohr is optimistic about Air India’s revival as a private carrier and feels that with SIA as a partner for operations in the East and with a possible partnership with Lufthansa in the West, it could really help everyone involved in the collaboration. He spoke with The Times of India (TOI) and said,
“India has not had an adequate seat at the (global) aviation table in the past. Air India with SIA on one side looking east and Lufthansa Group looking west has potential for something big, something that can change Indian aviation. As a partner it would be a privilege for Lufthansa Group to help bring AI to its rightful place on the global stage. Air India deserves it.”
Training and technical assistance
Air India’s fleet is set for a massive overhaul, with around 500 new aircraft expected to join over the next decade. In an attempt to build a global brand, AI would need high-level crew training and technical support.
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Spohr believes that Lufthansa could add tremendous value as a partner and bring to the table its world-class training and engineering resources. He told TOI,
“We own a very large aviation training company for flight attendants and pilots. We have many cargo flights. With a healthy and growing Air India, I can see many growth opportunities. Lufthansa Technik has become number one in the world, not just Europe. If Air India is looking for engineering support, Lufthansa Technik could possibly provide it.”
“Everyone needs partners”
Spohr touched upon the issue of foreign carriers (particularly those in the Gulf) taking away a major chunk of Indian traffic to Europe and the US. He emphasized the need for Air India to reclaim that share back significantly.
He also said that with AI increasing its presence in Europe, it could benefit from exploring deeper ties with Lufthansa and making further inroads into the continent using its extensive network through partnership, adding,
“AI has SIA and we can be strong ally as well. No airline can do it alone – everyone needs partners.”
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There’s no doubt that the involvement of the Tata Group and SIA in Air India’s management has increased global confidence in the carrier. While there are several challenges that AI has to overcome, it’s also interesting to see it having discussions with other major global airlines for its expansion plans.
What do you think about Lufthansa’s interest in Air India? Please let us know in the comment section below.
Source: The Times of India