Wednesday, January 07, 2009: British Airways is reportedly in talks with Indian low-cost carrier GoAir to purchase a 25% stake, after failing to come to an agreement with Qantas last month.

Representatives from GoAir will reportedly be in London next month to hold talks with the UK-based carrier, says Indian paper the Economic Times, citing two anonymous sources close to the deal.

The interest in buying equity stake in GoAir comes in the wake of the development that the Indian government is considering a proposal to allow foreign airlines to pick up stake in domestic carriers, said a source close to the deal to the paper.

In 2008 British Airways attempted to strike a codeshare arrangement with GoAir which eventually fell through.

British Airways would not comment on the deal saying, As a matter of corporate policy, we do not comment on speculations.

GoAir has a market share of 2.3% in India, with an all-Airbus fleet of seven aircraft, GoAir flies to 12 destinations within India.


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