BA To Grow India Without Carrier Stakes

Although the commerce ministry is looking at a proposal to open foreign direct investment in Indian carriers by foreign airlines, British Airways CEO Willie Walsh categorically denies an interest in putting equity in an Indian carrier.

Media reports in the past have indicated that cash-strapped Kingfisher Airlines has been in discussions with many carriers, including BA, for an infusion of funds. Virgin Atlantic and Singapore Airlines also have denied they were in such talks with the carrier.

"BA has no plan to pick up a stake in an Indian carrier...We still believe there is a lot of opportunity in India," Walsh told AviationWeek.

Walsh said talks on code sharing were held in the past for domestic routes in India and BA was open to reviewing them in the future. "We will start talking to some Indian domestic carriers like Jet Airways. The focus has been to promote code-shares within the Indian domestic market," he added.

"India is an important market for BA," added Walsh, whose airline has been flying to the country for 80 years. India remains BA's second largest overseas market after the U.S. in volume. Flights were increased from 19 in 2005 to 48 in 2008.

Now, as a part of an initiative to snip routes that are not lucrative, Kolkata and Dhaka in Bangaldesh will be pulled out in April. Flights to Islamabad, the only destination served in Pakistan, were halted following the bombing of the Marriott Hotel in September last year. BA will be starting flights to Jeddah and Riyadh this quarter.

Walsh says despite tough years, BA felt Hyderabad--with five weekly flights that started last month--is important because it is the tenth fastest growing city in the world. It also has an efficient new $500 million greenfield airport.

Heathrow, according to Walsh, plays an important role in strengthening the direct route to Hyderabad to connect it and other destinations in India to the T-5 terminal onwards to the U.S and Canada.

BA started operations to India in 1929 when the journey took more than a week on four aircraft models, and made 20 stops, including a leg by train from Switzerland to Italy.

Photo: 'Grubby' via Wikipedia

AVIATION WEEK Copyright 2009, The McGraw-Hill Companies, Inc. All Rights Reserved.