IndiGo stock gains on codeshare pact with British Airways

Shares of Interglobe Aviation Limited or IndiGo traded 1 percent higher to Rs 2,407 in early trade on September 22 after the aviation major announced a codeshare agreement with British Airways to boost India-UK connections.

In the last six months, IndiGo stock has gained 27 percent. This is the most among all airlines listed on the bourses.

Code sharing is a partnership between two airlines that allows an airline to place its two-letter identification code on the flight schedules of another airline. This means that flights can be marketed by one airline and operated by another.

Through this codeshare, British Airways will add more routes to the existing IndiGo network to improve travel connectivity between India and the UK.

Follow our market blog for all the live action

British Airways from October 12 will add additional routes of Thiruvananthapuram to London’s Heathrow via Mumbai, Rajkot to Heathrow via Mumbai and Vadodara to Heathrow via Mumbai.

Also read: Boiling crude prices, lower traffic may spell trouble for aviation sector in Q2, say analysts

Presently, India’s largest airline has a codeshare agreement with Turkish Airlines, Qantas, Qatar Airways, Virgin Atlantic, KLM, American Airlines, and Air France.

Also read: DGCA suspends Air India’s flight safety chief amidst safety concerns

Speaking on the partnership, Abhijit Dasgupta, Senior Vice President of Network Planning and Revenue Management at IndiGo said, “This step will not only support trade and commerce between the countries but will also offer convenient travel options to students and tourists.”

Furthermore, British Airways has announced that all airline passengers travelling with IndiGo will be served a complimentary meal. The airline will also allow baggage allowance of up to two checked bags up to 23 kg in economy for flights to Indio.

At 9:20 am, IndiGo was trading at Rs 2,400 apiece, up 0.6 percent from the previous close on the National Stock Exchange.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.