Air-India is negotiating a marketing tie-up with British Airways rival Virgin Atlantic aimed at reducing BA's dominance on the India-UK sector. Meanwhile, speculation in India is growing that BA and Lufthansa may be interested in an equity stake in Air-India.

Under the rumoured tie-up, the two European carriers would adopt a hub and spoke strategy aimed at UK-India passengers and those between continental Europe and the USA. Virgin Atlantic chairman Richard Branson wants the Indo-UK bilateral changed to permit more flights between India and the UK.

Source: Airline Business