UK / India to allow airline alliances?
10.05.10
India and the UK are to amend a bilateral aviation agreement to allow airlines from the two countries to expand their reach to regional airports, two Indian aviation ministry officials told livemint.com. The move will allow Air India and Kingfisher Airlines to enter domestic code-sharing agreements with BMI and British Airways, respectively, as sought by the Indian airlines earlier this year.
Analysts say the British airlines, which have a limited network in the UK, will gain more from the amended agreement by enjoying access to onward connections to the much larger Indian market. ‘BA will get more than Kingfisher. The UK has limited city pairs that BA operates... (However) BA can interline and transfer to over 40 Indian cities and milk Kingfisher’s network for their own customers. This money will go to BA, not Kingfisher - Kingfisher will get nothing but a small cut,’ said Saj Ahmad, an aviation analyst told livemint.
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