Abstract

The case deals with the code sharing agreement between Air India and Virgin Airways, the second biggest airlines in UK after British Airways. The arrangement was considered to be a significant development for the ailing Air India. Under the arrangement, Virgin Airways was to fly three flights a week on the Delhi-London route. In July 2000, Virgin Airways started off with two flights a week. It was to start the third flight from October 2000. However, until late 2001, Virgin Airways was not allowed to fly a third flight. With the global aviation downturn in 2001, Virgin Airways was finding it difficult to sustain itself with two flights a week. It threatened to exit from India, if it was not allowed to fly the third flight.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Code sharing agreements between airlines, strategic alliances.

Keywords

Code sharing agreement, Air India, Virgin Airways, UK , British Airways, fly three flights, week, Delhi-London route., July 2000, third flight, October 2000, 2001, global aviation downturn