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Nimish
Member
Joined: 16 Dec 2006
Posts: 3438
Location: Bangalore, India
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 Posted: Fri Sep 05, 2008 11:33 am Post subject: British Airways eyes India Franchisee tie-up |
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From: http://www.business-standard.com/india/storypage.php?autono=333544
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UK flag carrier British Airways (BA) plans to tie up with an Indian domestic carrier in a franchise partnership.
If the move comes through, it would pave the way for international carriers to extend their networks within India, without having to make an investment. Current foreign direct investment (FDI) policy does not allow foreign carriers to hold equity, directly or indirectly, in domestic airlines.
The franchise model that BA — Europe’s third-largest carrier — follows globally involves no FDI but allows the franchisee (domestic airline) to use its livery, brand and code, apart from providing management expertise.
BA is believed to be in discussions with several domestic airlines, Wadia-owned Go Air among them.
Confirming that BA has been looking at such franchise agreements in India, Civil Aviation Secretary Ashok Chawla said: “So long as it is not surrogate cabotage we do not have any problem with franchising.”
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The government currently does not have guidelines on franchise arrangements, so, Chawla said a senior ministry official would meet BA executives on September 15 to understand the business plan.
A British Airways spokesperson said: “We will comment when there is something to talk about. As of now we will not comment on rumours and speculation.”
A GoAir spokesperson said: “In view of the possibility of the government relaxing its rules on flying abroad and in order to give our customers better value, we are exploring code share and alliances with various airlines from West Asia, Europe and America.”
BA has had franchise agreements with the South African carrier Comair, Glasgow-based Logan Air, Scandinavia’s Sun Air and Kenya-based Regional Air.
BA is keen to consolidate its market position in India, which is the airline’s largest contributor after the US in terms of passenger volumes. It has been looking for a partner, especially after its inter-line agreement with Jet Airways was severed.
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Interesting...
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karatecatman
Member
Joined: 19 Dec 2006
Posts: 5233
Location: Chennai -- INDIA
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| Posted: Mon Sep 15, 2008 10:34 pm Post subject: |
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www.domain-b.com/aero/gov_reg/20080915_franchise_plan.html
Civil aviation ministry mulls unique British Airways franchise plan for Indian market
15 September 2008
After striking up merger proposals with American Airlines in the US, Iberia in Europe and throwing its hat into the ring for several other European carriers, including Brussels Airlines and Austrian Airlines, UK flag carrier British Airways (BA) is turning its gaze to the southern hemisphere and offering a unique solution to domestic carriers in India, including Go Air, for a franchise arrangement.
Indian civil aviation secretary, Ashok Chawla, is quoted as saying that aviation ministry officials will meet with BA executives today to examine the carrier's proposal. The arrangement will allow an Indian carrier to use the BA livery, brand and flight code, but operate under its own management.
While such an arrangement would allow BA to extend its network within India without having to make an investment, crucially, it would also circumvent the country's Foreign Direct Investment Policy, which prevents foreign carriers from owning equity in Indian airlines.
This case also intrigues as the Indian government has no guidelines on franchising arrangements.
India is a critical market for BA as the country is the UK carrier's second biggest market after the US in terms of passenger volumes.
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www.dailymail.co.uk/money/article-1055874/British-Airways-eyes-lucrative-Indian-expansion-plan.html
British Airways eyes lucrative Indian expansion plan
By Karl West
Last updated at 8:49 AM on 15th September 2008
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.
Another interesting thing will be Eitihad's aggressive attempts to buy BMI and greater codesharing with Sri Lankan.
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