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ECONOMIC TIMES
IndiGo lines up marketing alliance with foreign carrier
7 Apr 2009
Nirbhay Kumar, ET Bureau

NEW DELHI: IndiGo, the country’s largest low-cost airline by market share, has shown an interest in entering into a marketing alliance with a foreign carrier. The Delhi-based carrier recently wrote to civil aviation ministry seeking its permission to enter into code-share agreement with international carriers, a government official said. IndiGo has fast increased its market share simultaneously maintaining a load factor considered the best in the industry.

The airline is in talks with South African Airways (SAA), South Africa’s flag carrier, for a possible tie-up, following its aborted attempt to partner with Virgin Airlines, a person close to the development said. A detailed questionnaire to the airline remained unanswered. Code sharing with an international carrier will enable IndiGo to sell foreign destinations on its reservation system.

The aviation ministry has given its go-ahead to the private carrier. In a recently-framed guideline, the ministry has said that notwithstanding the present eligibility criteria for flying abroad, code-shares by Indian scheduled carriers as marketing airline can be entered into with foreign airlines for international operations.

“The present eligibility criteria for domestic airlines to fly international will, however, continue as approved by the Cabinet in 2004,” an official said. The existing guidelines require a domestic airline to have a fleet of at least 20 aircrafts and an operational experience of five years in the domestic market before flying abroad.

As IndiGo started its domestic operation in August 2006, it has to wait for nearly two years to spread its wings internationally. “The new guideline would allow local carriers to virtually fly abroad, despite restrictions. The flight for foreign destinations would be shown on the ticketing system of the domestic carrier.

Except that the local carrier would not fly its brand, it would still have several other advantages of flying international,” Amadeus India managing director Ankur Bhatia said.