BA's high hopes for Indian skies

British Airways chief Willie Walsh is in Hyderabad, India's sixth largest city, to promote the carrier's five-flights-a-week direct service, which launched last month.
But he also talks openly about the potential for doing a deal with domestic carriers, if and when the country relaxes the current onerous restrictions on foreign ownership.
Walsh says: 'At the moment foreign airlines cannot invest in domestic airlines and for that reason we have had discussions with a number of Indian carriers about a code share arrangement. But nothing beyond that.
'We did consider a possible franchise arrangement. Our preferred route is to link up with a domestic carrier - it would be an advantage going forward.'
BA's chief says the flamboyant boss of Kingfisher Airlines and member of the Indian parliament, Vijay Mallya, has been the most outspoken advocate of changing the rules on foreign ownership 'because of his desire to see new equity'.
There is talk about potentially allowing overseas carriers to take a stake of up to 49 per cent in local airlines. Kingfisher and rival Jet Airways joined together in a cost saving alliance last October as they try to shelter from the economic storm that threatens the very survival of airlines.
Walsh is clearly annoyed that other industries appear to escape the arcane restrictions that prevent foreign ownership of Indian carriers, saying: 'It does seem a bit strange that airlines are excluded.'
He admits having held talks with 'several' Indian competitors about a deal, including local no-frills operator GoAir.
23/01/09 Karl West/DailyMail, UK

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Categories: Foreign Jan 2009