Star Alliance, a 27-airline network which flies to 1,185 airports in 185 countries, formally barred Air India's admission on Sunday saying that the domestic airline has not fulfilled certain conditions. Air India and Star Alliance had signed a memorandum of understanding in 2007 under which the former agreed to fulfill some conditions to facilitate its induction as per a report in ET

"Member airlines of the network and Air India have jointly concluded that the integration of Air India into the global airline alliance will be suspended. This is due to the fact that Air India has not met the minimum joining conditions that were contractually agreed in December 2007," a statement from Star Alliance said after member airlines concluded a vote late on Sunday. 

The move is a blow to Air India and is likely to make its task of expanding its international operations more difficult. Its turnaround plan hinges on improving its international passenger load to 75% from the current 65%. "Like in all integration processes before, members have to meet all minimum joining conditions. In this case, after more then 3½ years not all conditions have been met," Star said in a response to ET. "Our board's decision has left room to discuss a potential Alliance membership at a future stage, if deemed appropriate by both parties." 

Star Alliance network offers more than 21,200 daily flights to 1,185 airports in 185 countries and Air India's entry would have helped the airline reach many more destinations than it is currently able to do. Star Alliance, according to estimates of travel trade experts, carries 60% of the onward traffic from India with Lufthansa taking a lion's share to Europe. 

The Air India turnaround plan which is awaiting a go ahead from the group of ministers says clearly that Air India will have to get passenger loads of at least 75% on its international network. Air India now enjoys only 65% on its international flights. Its market share slipped to 15.5% according to the June data.