| Journal: TWUK | Section: |
| Title: | Issue Date: 12/06/00 |
| Author: | Page Number: 26 |
| Copyright: Other |
Singapore Airlines tipped to handle Air India management
AIR India is expected to pass its management to a foreign partner carrier, with Singapore Airlines tipped as the favourite.The Indian government, owners of Air India, is set to announce a partial sell-off of the loss-making airline, with a strategic partner key to a new business plan.
Up to 26% of the carrier is believed to be up for sale, with a portion of Air India available for foreign investment.
SIA is keen to forge links with Indian carriers as part of a wider Star Alliance plan to step up flights to the world’s second largest population.
When SIA joined Star Alliance earlier this year, chief executive Dr Cheong Choong Kong made it clear that India, along with China, was a major focus for the global airline group.
The Singapore airline has recently taken stakes in Virgin Atlantic and Air New Zealand. Virgin is planning joint Heathrow flights with Air India from next month.
From the UK, Air India faces increased competition to its Mumbai and Delhi hubs from new entrant Virgin and British Airways and would look to a new investor to make it more efficient.
The airline has yet to commit to a world alliance but has been approached by all the major groups.
Membership is dependent on becoming profitable and efficient.