British Airways in talks with IndiGo for alliance - source

LONDON Tue Jan 22, 2013 7:30pm IST

An IndiGo Airlines A320 aircraft is parked on the tarmac at Bengaluru International Airport in Bangalore March 7, 2012. REUTERS/Vivek Prakash/Files

An IndiGo Airlines A320 aircraft is parked on the tarmac at Bengaluru International Airport in Bangalore March 7, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   

LONDON (Reuters) - British Airways is in talks with India's biggest carrier, IndiGo, over a ticketing and baggage sharing agreement, a source with direct knowledge of the discussions said on Tuesday.

Known as an interline agreement, it allows customers from two airlines to buy connecting flights on one ticket. Such pacts are often precursors to code-share agreements, in which carriers sell tickets on each other's airline.

The arrangements increase revenue because airlines can offer more destinations, while keeping a lid on costs, as they don't need to service all the planes themselves.

Earlier on Tuesday, the Wall Street Journal reported a potential alliance between British Airways, owned by International Airlines Group (ICAG.L), and IndiGo, and said the two airlines also discussed a possible investment by IAG into IndiGo's parent.

"IAG has no plans to invest in any Indian carriers at this time," a spokesman told Reuters. An IndiGo spokeswoman said reports of an alliance with British Airways are untrue.

Based outside New Delhi in Gurgaon, IndiGo was founded by Rahul Bhatia's InterGlobe Enterprises, an aviation and travel services firm, and former US Airways LCC.N CEO Rakesh Gangwal.

The Indian aviation market, burdened by billions of dollars in debt and high costs of operations, has been abuzz with talks of partnerships with global carriers since India relaxed investment rules in September.

Jet Airways (JET.NS), India No. 2 carrier, is in talks with Abu Dhabi's Etihad Airways to sell a stake, while smaller rival SpiceJet (SPJT.BO) is also talking to foreign carriers over a potential investment.

(Reporting by Rhys Jones; Additional reporting and writing by Anurag Kotoky in NEW DELHI; Editing by Kate Holton and Louise Heavens)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage