London: British Airways is in talks with India's biggest carrier, IndiGo, over a ticketing and baggage sharing agreement, a source with direct knowledge of the discussions said on Tuesday.
Known as an interline agreement, it allows customers from two airlines to buy connecting flights on one ticket. Such pacts are often precursors to code-share agreements, in which carriers sell tickets on each other's airline.
The arrangements increase revenue because airlines can offer more destinations, while keeping a lid on costs, as they don't need to service all the planes themselves.
Earlier on Tuesday, the Wall Street Journal reported a potential alliance between British Airways, owned by International Airlines Group, and IndiGo, and said the two airlines also discussed a possible investment by IAG into IndiGo's parent.
22/01/13 PTI/Economic Times