Kingfisher, BA Deal Rumored

As the debate over foreign direct investment in Indian airlines heats up, cash-strapped Kingfisher Airlines may be in talks with British Airways for an investment, The DAILY has learned. A 49% equity would give BA a board seat, while control would remain with the Indian carrier.
BA refused to comment, and a Kingfisher spokesman said, “We’ve not offered any comment on this subject recently to any media house.”
India’s present policy allows investment of up to 49% in Indian airlines but not by foreign carriers.
The signs may be there that the situation is changing because starting June 1, Kingfisher began participating in oneworld’s Global Explorer round-the-world fare, available to airlines that, like British Airways, are members of the alliance. Non-member airlines of the Explorer program include Aer Lingus, Air Pacific, Alaska Airlines, Horizon Airlines and Gulf Air.
Given that Kingfisher has barely any long-haul international flights except for two dailies to London from Bangalore and Mumbai, a sector that is bleeding due to overcapacity, it is likely that if the carrier joins oneworld, it will offer its domestic connections to oneworld members.
The addition of Kingfisher’s domestic network will offer about 65 connections across the country.
11/06/09 Neelam Mathews/Aviation Daily/Aviation Week.com

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Categories: Foreign Jun 2009, Kingfisher Jun 2009, New Jun 2009