06 January 2009

BA warms to India - again

British Airways is reportedly re-considering acquiring a 25% stake in India’s GoAir with company officials expected to meet in Feb-09 (Economic Times, 05-Jan-09). Rumours of a franchise agreement surfaced in late 2008, after BA assumed that acquisition was not allowed. At year's end the Indian Government re-formulated the rules for foreign ownership. In these new rules while Foreign airlines are currently barred from holding direct or indirect stakes in Indian airlines, there is now a provision for foreign ownership as I have written before. GoAir plans to increase its fleet to 35 aircraft by Mar-2011 from the current six. It plans to add 20 aircraft this year and add another nine in the following two years.

So if they failed with QF, are struggling with IB, going nowhere with AA then perhaps India might be a good training ground.

Given the massive spree from LH - the boys and girls in Waterside better get a move on.


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