British Airways will soon strike a code sharing, co-branding and marketing agreement with GoAir. This would lead to an equity stake in Go Air by British Airways. By this code-sharing agreement both the airlines will get equally benefited, BA can mark its reputation in Indian market and Go Air can do the same in international market. BA is the largest passenger’s contributor after US so; this is definitely going to help Airlines industry in India. The deal would benefit Go Air by $350 million which is definitely a huge profit to the airlines. For this deal Go Air has appointed a London based Bank Euromax Capital for the transaction.
Indian Government is also looking forward to this agreement between the foreign airlines with domestic flights India. Earlier Royal Bank Scotland and Standard chartered were the two banks which were supposed to make an equity investment into GoAir. The IATA in response has said that 2009 will be the worse year than 2008 in terms of number of passengers and yield, so in these conditions a foreign airline having an equity share in Indian airline is definitely going to lessen the effect of recession in the market of airlines industry.
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