British Airways eyes lucrative Indian expansion plan

British Airways is looking to cash in on the lucrative Indian market by holding talks with several local airlines, including Go Air, about striking a franchise agreement.
Civil Aviation Secretary, Ashok Chawla, reportedly confirmed that a senior Indian ministry official is scheduled to meet with BA executives today to examine the carrier's proposal.
Under a franchising agreement, an Indian carrier would be allowed to use the BA livery, brand and flight code, but would retain its own management.
This would allow BA to extend its network within India without having to make an investment.
Crucially, such a partnership would also circumvent the country's Foreign Direct Investment Policy, which prevents foreign carriers from owning equity in Indian airlines. The Indian government has no guidelines on franchising arrangements.
Although BA declined to comment, the carrier is keen to consolidate its market position in India, which is its second biggest market after the US in terms of passenger volumes.
BA's attempts to push into India come as weaker rivals fight for their survival. Italian carrier Alitalia said it may have to ground planes from today because it could not secure fuel from wary suppliers.
Italy's aviation authority also said its operating licence could be revoked.
15/09/08 Karl West/Daily Mail, UK

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Categories: Foreign Sep 2008