TAM Archives | Nicholas Kralev

Air India had no chance with Star Alliance

Air India’s entrenched corporate culture and internal Indian politics cost the carrier membership in the global Star Alliance. Although Star’s leadership went out of its way to help the airline meet the group’s more than 200 requirements, it finally gave up the futile effort last week and suspended accession talks.

Not surprisingly, Air India has been trying to assign blame to anyone but itself, pointing a finger at Lufthansa and accusing it of sabotaging the Indian carrier’s potential membership. Regrettably, it appears the airline has learned little from the nearly four-year experience. It needs to do some serious soul-searching if it wants to survive…

Airlines find new way to overcharge fliers

As if the existing methods to overcharge travelers weren’t enough, some airlines have just found a new way deeper into your pockets. It comes in the form of sophisticated software designed to increase prices based on your desperation and lack of choice. Will you fall for the latest gimmick?

The new application is courtesy of Amadeus, one of the major distributors of airline and other travel-related data worldwide. This week, it announced the launch of “Active Valuation,” an “IT solution that enables airlines to maximize revenues across multiple channels,” or to charge you more for something you can otherwise get at a lower price…

Round-the-world fare mysteries revealed

Trying to figure out how airlines determine fares is utterly futile, but that doesn’t necessarily dampen my curiosity. On a recent visit to the Star Alliance headquarters in Frankfurt, I sought insights into how the global group sets its popular round-the-world fares.

I always enjoy dropping by the alliance’s modest office — not only because it’s an easy walk from the airport terminal, but also because just about everything it does is unique and pioneering in the industry. With 27 member-carriers, one would think it’s a grand operation, so I was surprised that fewer than 80 people work there…