Kingfisher Airlines will join OneWorld Alliance, a global airline network, a move analysts say will boost the debt-ridden carrier?s revenues by anywhere between 10-15% by issuing common tickets, sharing software and using same lounges in airports. For Kingfisher, the first Indian carrier to join a global alliance, the entry would be a shot in the arm, as it is struggling to cut down its R6,007-crore debt accumulated until April 2011.
?Any airline alliance implementation programme is a complex and detailed project, covering just about every aspect of the company?s activities and departments,? said Michael Blunt, vice president, corporate communications, Oneworld Alliance, in an e-mail response. ?Kingfisher Airlines is making really good progress and is right on track against the plan. We look forward to welcoming them on board early in 2012,? he added.
According to him, the alliance is not seeking any other partner airline in India.
In August, 2011, Star Alliance, with leading members like Singapore Airlines and Lufthansa Airways, shot down Air India?s attempt to join them. Air India officials declined to comment on the potential competition from Kingfisher Airlines after the latter joins the Oneworld Alliance.
New York-based Oneworld Alliance has 12 members, of which the prominent airlines include British Airways, American Airlines, Cathay Pacific and Royal Jordanian Airways. The alliance, jointly, connects 750 destinations in 150 countries with passengers having access to 550 airport lounges. ?Our integration process is on track and we will be joining the alliance in early 2012,? a KFA spokesperson said.
Interline booking revenues accounted for around 10% of member airlines? revenues. Interline bookings are those made by passengers transferring from one alliance member to another. Oneworld, which primarily earns from members’ joining fee and annual fees, reported $850 m revenues in 2010, data from OneWorld Alliance website shows. The 12 members generated $2.2-billion revenue in 2010, a 17% rise from 2009, from the 8 million passengers who chose interline bookings..
?Any airline tying up with an alliance benefits from it, as it gives the airline access to the full marketing network of the alliance,? said Vishwas Udgirkar, senior director at consultancy firm Deloitte India. ?Member airlines promote each other, specially in destinations that they don?t cover.? His comments are not specific to Kingfisher.