India tries to blackmail Star Alliance

The Indian government is engaging in apparent blackmail of the Star Alliance, following the global airline group’s rejection of Air India’s membership application. New Delhi’s threat to take away traffic rights from Star members is about to test the diplomatic skills of both the affected carriers and the alliance leadership.

As I wrote in August, Star really, really wanted to add Air India to its network, because of the large and fast-growing Indian market. It spent more time, effort and money on helping Air India meet the membership requirements than it has with any other candidate. At the end, however, Air India’s entrenched corporate culture and internal Indian politics became unbearable, and the alliance gave up…

UAE mixes aviation and foreign policy

As U.S. and other NATO troops continue to die in Afghanistan, one of the main questions being asked in foreign policy circles is this: How committed are Arab governments to defeating al Qaeda and the Taliban? The United Arab Emirates showed last week that fighting violent extremism is less important than its commercial airlines’ well-being.

Most governments around the world help their carriers in various ways, not only out of national pride, but because a strong airline has a positive impact on a country’s economy. One of the missions of every U.S. embassy is to promote trade and commerce that benefit American companies. That has become an organic part of modern diplomacy.

New Lufthansa business class in a year

Lufthansa appears to have listened to the recent criticism of its decision to install its old angled business-class seats on the newly arrived Airbus 380 aircraft — finally, truly flat seats are planned when its first Boeing 747-800 enters service in late 2011.

Many Lufthansa customers were puzzled and disappointed when the German carrier didn’t bother to introduce fully flat beds on the A380. It was the perfect opportunity — the current seats have been inferior to those of many competitors for years and don’t quite fit the image of a leading airline, which Lufthansa certainly is. In addition, it rolled out brand-new first-class seats on the A380…

Western carriers return to Iraq

Iraq may not be among Western travelers’ most desired destinations quite yet, but some of the world’s leading airlines have decided that flying to the war-ravaged country can be profitable, so they are returning there after a 20-year absence.

Although two of Europe’s major carriers — Austrian Airlines and Turkish Airlines — have been serving Iraq since 2008, their re-entry in that market was viewed as only moderately significant at the time, and none of their peers followed suit. Austrian chose Erbil, the capital of Kurdish northern Iraq, which was never nearly as violent as the rest of the country…

Airline trade group raps governments

Should the world’s largest airline trade group openly criticize national governments that have enormous power over the industry? How likely is it that politicians will actually listen to that criticism, and could it backfire in the end?

Giovanni Bisignani, director-general of the Geneva-based International Air Transport Association (IATA), seems much more concerned about the industry’s future than not angering governments. In fact, he thinks officials’ failure to adapt their policies to new realities is hurting the airlines. Mr. Bisignani made some daring comments aimed at specific governments at a press conference in Washington last week — in addition to projecting that the industry will lose about $11 billion this year…