Ai In Code-Sharing Talks With Sa Airways

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Air India (AI) is negotiating with South African Airways (SAA) for a code-sharing arrangement. AI has already suspended its operations to South Africa since April. SAA is also negotiating with Jet Airways for a marketing arrangement. SAA general manager for India Eugene Holm told Business Standard that the negotiations between the two airlines are at a preliminary stage. Once the agreement is signed, AI is expected to fully withdraw its operations to South Africa and pay a certain amount as fee to SAA for blocking a fixed number of seats on every flight.

At present, AI has code-sharing arrangements with United Airlines, SAS, Malaysian Airlines and Air Mauritius. It is negotiating with Air Emirates for a similar pact. SAA currently flies thrice a week from Mumbai to Durban and Johannesburg, and as per a bilateral agreement, both countries can utilise up to 900 seats each. Holm said that SAA plans to introduce a fourth flight from Mumbai as and when more aircraft are available. He said there was a load factor of around 85 per cent on flights to and from India. SAA has already made a small profit in its first year of operations on the India route.

Holm disclosed that SAA, which is South Africas flag carrier, is in the process of being privatised. It has also changed its logo, shedding the springbok motif for a horizon mark design. Lufthansa and British Airways have evinced interest in picking up a stake in the airline. British Airways has already bought over the second biggest airline in the country, Com Air, while another government-controlled domestic airline, Sun Air, has also been privatised. SAA with a fleet strength of 49 aircraft plans to add a B747 in October, another B747 in March 1998 and four B777 in November 1998.

The airline currently flies to over 22 cities.