Air India signs code-sharing agreement with Air Canada

Expects four to five per cent revenue growth from Star Alliance membership

Air India has signed a code-sharing agreement with Air Canada, a Star Alliance member. This is Air India’s first such pact with a member of the 27-member global airline alliance, after it joined the group in June this year. The code-sharing pact covers Air India’s domestic flights and Air Canada flights to Canada from London, Paris, Hong Kong and Shanghai.

Code-sharing agreements allow one airline to sell seats on another’s network and increase revenue.

Air India expects a four to five per cent growth in its revenue thanks to the wider commercial partnerships and integration of frequent-flyer programme with other Star Alliance carriers. This will boost business-class occupancy on Air India flights, which is currently at 45-50 per cent.

Frequent-flyer programme integration allows passengers to redeem miles on any of the Star Alliance airlines.

Currently, Jet Airways flies to Toronto and has a code-sharing agreement with Air Canada. Air India used to fly on the Delhi-Toronto route, but it withdrew the service two years ago owing to losses. Currently, Air India connects Canada via its non-stop flights to the US.

Other than the pact with Air Canada, Air India has code-sharing agreements with 13 airlines. A code-sharing pact with Hong Kong Airlines was signed in April this year. The airline’s executives hope to negotiate code-sharing with United, which has for a couple of years not been allowing Air India to sell tickets on its US network.

Air India earned Rs 19,000 crore in 2013-14. It estimates its revenue to grow to Rs 21,000 crore in 2014-15. The airline’s executives expect the Star Alliance gains to materialise from the next financial year.

Air India and Air Canada did not respond to an email query on the topic.