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Walsh hints at Indian investment for BA-Iberia FT MONEY GYM

By Pilita Clark in Mumbai
Published: September 4 2010 12:05 | Last updated: September 4 2010 12:05 Try an FTMoney Gym virtual workout to learn more about
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A newly merged British Airways and Iberia would be “very interested” in investing in an Indian include spread betting, covered warrants, CFDs and
airline, BA chief Willie Walsh said on Saturday as he announced a groundbreaking code-share ETFs
deal with India’s Kingfisher Airlines. More

“Without question this is a market for the future,” said Mr Walsh, who is set to head the new
International Airlines Group company to be formed under the Iberia merger due to be finalised
by the end of this year.

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“The ambition of IAG is to pursue further opportunities for consolidation and I can certainly let
you speculate that IAG would be very interested in participating in the Indian market,” he told
reporters in Mumbai on his second trip to the city in a month. LATEST HEADLINES FROM THESTREET.COM

“It’s too early for me to say for definite, given the new company hasn’t yet gone into action, that Samsung Mulls Investing $26B in 2011
would be early next year,” he added. “But the ambition of the new company would be to pursue JetBlue Lets Slater Go
further consolidation and this is a very important market.” Hurd in Talks With Oracle - Report
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India lets international investors own stakes in its airlines, but not foreign carriers. There has
been talk of changing the law however, as local carriers including Kingfisher and rival Jet More
Airways seek funds to expand in one of the world’s fastest growing aviation markets.
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British Airways, which counts India as its second biggest international market after the US, has
been working on its relationship with the upscale Kingfisher for some time.
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The UK flag-carrier sponsored Kingfisher’s recent move to join the Oneworld global alliance and
on Saturday, Mr Walsh revealed the two airlines had agreed to a code-share deal – BA’s first W3 Professorship for Economics of East Asia
with an Indian airline. Ruhr-University Bochum
Head of UK Distribution
The new agreement, due to start on September 15, will give each carrier more access into Franklin Templeton Investments
each other’s local markets, allowing passengers to fly far more seamlessly on a range of new
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routes, such as London-Mumbai-Goa or, heading the other way, Mumbai-London-Paris.
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Instead of having to book separate tickets on each airline, one ticket will be available on each Post a job now
carrier’s website; luggage will be checked all the way through; frequent flyer miles used for the
full trip and each airline will offer access to its lounges.
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The move should help ward off the growing threat both BA and Indian airlines face from
fast-growing Middle East airlines such as Emirates of Dubai and Etihad of Abu Dhabi, which FT Lexicon MBA-Direct.com
have been expanding their presence throughout India in recent years, especially in its secondary FT Bespoke Forums FT Newspaper subscriptions
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Emirates is seen as a particular threat, especially since it announced in June it was ordering Luxury Travel brochures The Non-Executive Director
32 more Airbus A380’s, the world’s largest passenger jet, on top of the 58 it had already said it Analyst Research
would buy.

The move has led some to wonder if the ambitious airline could end up transforming the long
haul aviation market as much as successful budget carriers such as Dublin-based Ryanair have
revolutionised short distance markets.

Mr Walsh is well aware of the challenge in India, one of the world’s fastest growing aviation
markets.

“I think Emirates will be looking with envy at us today as we announce our new relationship with
Kingfisher,” he said.

ENDS

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