Air India, Singapore Airlines expand commercial partnership
"Air India remains committed to expanding its global footprint, both by adding new aircraft to our own fleet and by forging stronger commercial partnerships, especially with our fellow Star Alliance member carriers," said Campbell Wilson, Air Indi...
The pact could include expanding both carriers' corporate travel programmes, a source of high-yield revenue for airlines. The agreement is subject to regulatory approvals and the signing of definitive agreements, according to the airlines.
SIA holds a 25% stake in Air India.
The pact paves the way for both carriers to forge a partnership on the principle of aircraft neutrality wherein revenues or profits are shared on a predetermined basis on select routes, decoupled from the specific airline flying a passenger.
Air India and SIA said they are also planning to explore opportunities to broaden the scope of their cooperation in select markets, beyond Singapore and India, subject to regulatory approvals.
Such an agreement would help the carriers take on deep-pocketed Gulf carriers on North America and Australia routes.
"Air India remains committed to expanding its global footprint, both by adding new aircraft to our own fleet and by forging stronger commercial partnerships, especially with our fellow Star Alliance member carriers," said Campbell Wilson, Air India's CEO and managing director.
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