HOME
NATION
BUSINESS & ECONOMY
INTERNATIONAL
SCIENCE & TECHNOLOGY
ENTERTAINMENT
LIFESTYLE & FASHION
SPORTS
TRAVEL
NATION
BUSINESS & ECONOMYINTERNATIONAL
SCIENCE & TECHNOLOGY
ENTERTAINMENT
LIFESTYLE & FASHION
SPORTS
TRAVEL
MORE STORIES Why smokers struggle to quit and fail Hasina chooses 25 novice ministers, makes personal physician foreign minister Malik wants to guide Pakistan to the top Skin sizzles in Bollywood - and it's not a problem Striking truckers hope government will talk to them 'Prabhakaran's extradition call shows India's stand on LTTE' We need more short films to promote young talent: Anupam Kher Ashok Leyland sales down 63 percent in December BJP draws roadmap to general elections, sticks to terror Mamata's acts are childish: Biman Bose
© 2008-2010 Dmanewsdesk.com
- All Rights Reserved.
- All Rights Reserved.
British Airways set to tie-up with India
September 8, 2008
UK flag carrier British Airways (BA) plans to tie up with an Indian domestic carrier in a franchise partnership. Confirming that BA has been looking at such franchise agreements in India, Civil Aviation Secretary Ashok Chawla said: “So long as it is not surrogate cabotage we do not have any problem with franchising. We would meet BA executives on September 15 to understand the business plan as the government currently does not have guidelines on franchise arrangements.”
A British Airways spokesperson said: “We will comment when there is something to talk about. As of now we will not comment on rumours and speculation.”
BA is enthusiastic to consolidate its market position in India, which is the airline’s largest contributor after the US in terms of passenger volumes. It has been looking for a partner, especially after its inter-line agreement with Jet Airways was severed.
A franchise arrangement will also increase competition in India, more so when Jet Airways and Kingfisher’s international operations compete with BA for the same market share. The airline has over 48 flights a week from various Indian cities.
BA’s rival Virgin Airlines has also expressed interest in a full-service domestic carrier in India when promoter Richard Branson visited India. It has also openly talked of buying equity in an Indian domestic carrier if it is allowed.
If the move comes through, it would pave the way for international carriers to widen their networks within India, without having to make an investment. Present foreign direct investment (FDI) policy does not allow foreign carriers to hold equity, directly or indirectly, in domestic airlines
Although the government favours foreign airlines investing in India, it has faced resistance from domestic carriers. Kapil Kaul, CEO (India and Middle East), Centre for Asia Pacific Aviation said “India is the only country that distinguishes between foreign airline investment and foreign institutional investments. Worldwide, there is no such distinction.”
A British Airways spokesperson said: “We will comment when there is something to talk about. As of now we will not comment on rumours and speculation.”
BA is enthusiastic to consolidate its market position in India, which is the airline’s largest contributor after the US in terms of passenger volumes. It has been looking for a partner, especially after its inter-line agreement with Jet Airways was severed.
A franchise arrangement will also increase competition in India, more so when Jet Airways and Kingfisher’s international operations compete with BA for the same market share. The airline has over 48 flights a week from various Indian cities.
BA’s rival Virgin Airlines has also expressed interest in a full-service domestic carrier in India when promoter Richard Branson visited India. It has also openly talked of buying equity in an Indian domestic carrier if it is allowed.
If the move comes through, it would pave the way for international carriers to widen their networks within India, without having to make an investment. Present foreign direct investment (FDI) policy does not allow foreign carriers to hold equity, directly or indirectly, in domestic airlines
Although the government favours foreign airlines investing in India, it has faced resistance from domestic carriers. Kapil Kaul, CEO (India and Middle East), Centre for Asia Pacific Aviation said “India is the only country that distinguishes between foreign airline investment and foreign institutional investments. Worldwide, there is no such distinction.”
Business & Economy
Boeing eyes $20 bn defence orders from India
Prime Minister Prachanda of Nepal visited India as an economic visionary, not a rebel
FIRST VH-71 PRESIDENTIAL HELICOPTER PRODUCTION AIRCRAFT TAKES FLIGHT
India, Pakistan to launch trans-Kashmir trade
Nooyi calls for India-US investment treaty
Lloyds union for ending bank outsourcing to India
N-deal gets Senate panel nod as Manmohan Singh arrives
India to develop regional transport aircraft
Etisalat buys stake in Swan Telecom, to enter Indian market
Reliance Industries has no plan to resolve gas dispute: Anil Ambani
Indian team to visit Israel to discuss AWACS delay
Bush asked to raise religious freedom concerns with Manmohan Singh
India will help out of financial crisis: British finance minister
Prime minister to be approached again to bail out Air India
CPI-M, Trinamool reach out to Singur farmers
India, Pakistan finalise modalities for cross-LoC trade
PM looks forward to discussing 'entire range of issues' with Bush
Eco-friendly 'green buildings' catching on in India
SETTING THE RECORD STRAIGHT ON F-35
Government in no hurry to privatise n-energy business