go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 8:27 pm

hi everybody..it seem that af is after air india again. Is this deal viable? Does it affect competition at all and what would indian airlines response be?

comments welcome..krgds to all

Air France chief to have another go at A-I

G Ganapathy Subramaniam
NEW DELHI
AFTER its initial bid was abandoned mid-air, Air France is doing another take-off on Air-India. Its CEO Jean Cyril Spinetta is visiting India next week to explore the possibility of having another go at the national carrier.

This even as the disinvestment programme for Air-India is all set to enter the final lap.

The possibility of a re-bid or a tie-up with the Hinduja group are among the points which are being explored now, industry sources said.

However, the official version is that the big boss of Air France will be in town to participate in a reception to bid farewell to Gerald Petit, the general manager of the airline in India.

The French ambassador in New Delhi is hosting a reception on June 12 to bid farewell to Petit and welcome his successor, Jean-Louis Calmettes.

Apart from the reception and conferring of a `gold medal on tourism’ to the outgoing Air France boss in India, the schedule of Spinetta includes a meeting with disinvestment secretary Pradeep Baijal and civil aviation minister Sharad Yadav.

The Air France chief executive is here only on June 12 and senior officials of the company, including vice president Dominique Perit, will be accompanying him.

Air France is looking at a situation where a rebid for Air-India will give the Paris-based company another chance, industry sources said.

It may also seek additional bilateral rights to expand its network in India, industry sources said.

In partnership with Delta of the US, Air France was very keen on taking up equity in Air-India and had even filed expression of interest.

However, due to lack of a suitable domestic partner, the bid was not pursued.

Air France did not file initial technical proposal as scheduled since its negotiations with ITC did not succeed into a partnership, sources said.

The main reason was the quantum of investment necessary to take up 40 per cent equity in Air-India which has been earmarked for a strategic partner.

According to the rules laid down by the government, a foreign airline can take up 26 per cent equity in the national carrier but it is necessary to set aside 14 per cent equity for a domestic partner.

A re-bid with a different set of rules could open the doors for Air France, officials of the company feel.

However, there has been no official work on the issue from the India office of the airline since the matter is being handed by the headquarters in Paris.

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It is amazing what can be accomplised when nobody takes the credit
 
B747-437B
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Joined: Thu May 30, 2002 6:54 am

RE: Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 8:36 pm

Don't hold your breath.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
zizou
Posts: 1483
Joined: Tue Oct 10, 2000 10:31 am

RE: Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 10:33 pm

Will we see L'Espace on Air India's longhaul flights now??!!!
 
jaysit
Posts: 10186
Joined: Thu Jun 01, 2000 11:50 pm

RE: Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 11:01 pm

I think we're likely to see a UA-US merger first (NOT!!!) before we see an AF-AI deal occurring. So, don't hold your breath for L'espace seats or a CDG hub for AI.
Atheism is Myth Understood.
 
go canada!
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Joined: Wed Jun 06, 2001 1:33 am

RE: Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 11:23 pm

What happens if there is some truth in this? I think it would make sense for Af to move into India due to competition concerns with purchasing a european or american airline.

what problems would this have to overcome?
It is amazing what can be accomplised when nobody takes the credit
 
Jubilee777
Posts: 502
Joined: Thu May 20, 1999 10:34 pm

RE: Air France And Air India-What A Lovely Thought...

Fri Jun 08, 2001 11:44 pm

Singapore Airlines and TATA group are in the race for Air India. There's another group bidding (not sure of the spelling) H. Brothers Group.

The SQ bid is slated to win.

J777
 
BarfBag
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Joined: Fri Mar 30, 2001 7:13 am

RE: Air France And Air India-What A Lovely Thought...

Sat Jun 09, 2001 1:54 am

I think youre referring to the Hinduja brothers here. Arent they out of the race ? They're mired in the British political scandals as well as the old Bofors case in India right now.