Marketing tie-up allows Virgin to enter India, help AI on Lond

, he chuckled: “If I wanted to do something this week, it would have to be on the basis of a relationship with Air India. The other option would have been to wait till January when the bilateral negotiations between India and the UK begin.”

Virgin’s entry will spell good news for the 300,000 people who travel between United Kingdom and India every year since Branson has also promised a “nearly 15 percent lowering of fares plus our great service which is double the quality offered by other carriers.”

Sources say that the agreement represents a coup for AI as it will give it access to Virgin’s innovative marketing expertise while allowing Virgin to operate from India which they have been trying to do for nearly a year.

Virgin, according to the agreement chalked out, will fly between London and New York and Branson says he’s equally keen on both the routes. Branson said that Virgin’s entry would significantly change the tourism industry with four to five Jumbo jets flying seven to eight flights a week.

Sources say that AI has been negotiating with Virgin for nearly six months now and Branson will formally sign on the dotted line tomorrow morning. AI will also fill the gap left after Air Canada formally withdrew from its earlier marketing tie-up.

At present, passengers flying to India have to fly third country as there are a limited number of flights. Sources say that if the tie-up is successful, Virgin will be a front-runner to be AI’s strategic partner after disinvestment.

Today Branson went on a meet-and-greet trip for Virgin. He held talks with External Affairs Minister Jaswant Singh in the morning and Tourism Minister Uma Bharti in the afternoon. He also went on a whirlwind tour of the Aviation Ministry after meeting both the ministers, Sharad Yadav and Chaman Lal Gupta and Aviation Secretary R Gupta. Branson said he met with a very positive response.