Thwarted BA for marketing tie-up with Go Air: report

November 3rd, 2008 - 8:55 pm ICT by IANS  

London, Nov 3 (IANS) British Airways may enter into a marketing alliance with Go Air after a multi-million plan to take over the Indian carrier was defeated by legal difficulties, a newspaper reported.Under the plan reportedly under consideration, Go Air will use BA flight codes on its domestic network, the Sunday Times reported.

BA refused to comment on the report, with a spokesman telling IANS Monday: “We do not comment on rumour or speculation.”

The Sunday Times reported BA planned a takeover of the Mumbai-based Go Air for up to $600 million for a controlling or significant minority share.

The paper described the move as audacious, saying “such cross border deals are normally out of the question in commercial aviation.”

It said BA aimed to get around the restrictions by setting up an Indian intermediary company which would hold its investment in Go Air but was thwarted by “legal difficulties.”

The paper said revelations about a marketing alliance with Go Air comes at a crucial time because quarterly results expected this week are likely to be “grisly.”

It said analysts believed second quarter pre-tax profits could fall to about 50 million pounds, compared with last year’s 304 million pounds.

The paper quoted an unnamed rival airline executives as saying: “I think it indicates where they think the real future of the airline industry lies, and where their next deal might come from - India or China.”

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