India / UK to sign open skies deal?
10.05.10
India and Britain are to amend a bilateral pact to allow airlines from the two countries to expand their reach to regional airports, two Indian civil aviation ministry officials told livemint.com. The move will set the stage for Air India and Kingfisher Airlines to enter so-called domestic code-sharing agreements with British Midland Airways (BMI) and British Airways . (BA), respectively, as sought by the Indian airlines earlier this year.
Analysts say the British carriers, which have a limited domestic network, will gain more from the amended agreement by enjoying access to the much larger Indian market. ‘BA will get more than Kingfisher. The UK has limited city pairs that BA operates... (However) BA can interline and transfer to over 40 Indian cities and milk Kingfisher’s network for their own customers. This money will go to BA, not Kingfisher - Kingfisher will get nothing but a small cut,’ said Saj Ahmad, a London-based aviation analyst.
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