British Airways in talks with IndiGo for alliance - source
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)
- Tweet this
- Share this
- Digg this
- One dead, one wounded in shooting in Chicago financial district
- Israel, Palestinians locked in vicious circle of Gaza wars
- UPDATE 2-Bombardier plans more job cuts, Russia plans intact
- UPDATE 1-EU adopts toughest Russian sanctions yet, targets 5 Russian banks
- CORRECTED-UPDATE 2-GE credit card unit Synchrony makes muted debut on NYSE
The United States said on Thursday it was hopeful that differences between India and much of the rest of the world over a major trade agreement could be resolved in time, with only hours remaining before the deal has to be signed. Full Article
ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources Full Article