According to a PTI report, British Airways' (BA) multi-million pound takeover plan of Low Cost Carrier (LCC) GoAir got derailed and the Europe's leading carrier may now negotiate for a marketing alliance instead. According to the PTI report which quoted UK’s The Sunday Times, “British Airways planned an audacious, multi-million pound takeover of one of India's leading airlines - but the scheme was derailed by problems with industry-ownership laws.” However, the daily said that it is understood BA may negotiate a marketing alliance with GoAir instead, with the LCC using BA flight codes on its domestic network.
Quoting senior industry sources, The Sunday Times said, “BA wanted to take a controlling or significant minority share, and was ready to pay up to USD 600 million for the stake.” As the commercial aviation sector in India has tough rules preventing foreign nationals from owning or taking control of airlines, BA aimed to get round the restrictions by setting up an Indian intermediary company to hold its investment in GoAir, the newspaper said. |