Air India's integration into Star Alliance has been put “on hold”, after it failed to meet the alliance’s standards.
The carrier's planned membership of the alliance was first announced in 2007, and it had been due to complete the joining process by last year.
In May, however, Star Alliance gave Air India a deadline of July 31 to meet the minimum terms of its joining contract, which, as it has now emerged, it was unable to do.
The decision to suspend the integration process was reached by the member airlines of Star Alliance and Air India itself, according to an official statement.
Jaan Albrecht, Star Alliance's CEO, said: “With the collective decision to put the integration efforts on hold today we aim to contribute to Air India’s flexibility to concentrate on its ongoing strategic reorientation.
“In this process our member carriers will continue to provide assistance to Air India wherever required.”
The road to future membership has been left open, however, with Air India's existing relationships with Star Alliance member airlines unaffected by the decision.