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Delta Air Lines to buy 24% of India’s Jet Airways?
July 7th 2017
Delta Air Lines is reported to be one step closer to expanding its footprint in the Asia-Pacific. Read More » A report in India’s The Economic Times this week suggested Jet Airways was in advanced discussions with Delta to expand the airlines’ commercial ties, including the possibility of selling 24% of the Mumbai carrier to the American airline for US$310 million.
Delta’s former Asia boss, Vinay Dube, was announced as Jet Airways’ new CEO in late May. As part of the U.S-Gulf carrier subsidies dispute, Delta terminated its flights to India in 2015. They were unprofitable, it said, because of price dumping by Middle East airlines.
Delta has since established deep commercial ties with Jet. Earlier this year, it announced an expansion of its code-share agreement with Delta and Air France-KLM. Jet itself has a mini hub at Amsterdam’s Schiphol Airport from where it channels passengers to North America.
Given the cosy relationship between Jet on the one hand and SkyTeam founding members Delta and Air France-KLM on the other, industry analysts have long predicted Jet would join the SkyTeam alliance.
While this union would certainly make sense, the fact that Etihad Airways owns 24% of Jet and uses the airline as a feeder for its long-haul flights complicates matters.
India’s aviation market is looking at a turbulent end-of-year after it emerged last week that its government is looking to sell a significant holding in flag carrier, Air India. Tata Group, with the support of Singapore Airlines, and IndiGo Airlines are both said to have made informal overtures for Air India, a Star Alliance member.
