Air India - The Virgin Airways Saga |
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"We are grateful to A-I, but as it is a government regulated body, it fails to understand many commercial implications, namely, that to operate two flights a week, we need to create the same infrastructure we require to operate six. This has led to an increase in Virgin's overhead costs as the crew keeps waiting for a week. This way, we will scarcely be able to pass on the envisaged benefits to our customers." - Thomas Niles, President, The United States Council for International Business (USCIB) in July 2004. IntroductionIn December 1999, India's national carrier, Air India (A-I) signed an agreement with Virgin Atlantic Airways1 (VA) by which VA would fly three flights on the Delhi-London route on a code-sharing2 basis with A-I.
Meanwhile, the Government of India (GoI) granted rights to BA to fly three more flights per week from Kolkata to London.
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1] UK's second biggest airlines after British Airways. |
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